Intrinsic value of Ball - BLL

Previous Close

$39.70

  Intrinsic Value

$82.55

stock screener

  Rating & Target

str. buy

+108%

Previous close

$39.70

 
Intrinsic value

$82.55

 
Up/down potential

+108%

 
Rating

str. buy

We calculate the intrinsic value of BLL stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 13.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  21.20
  19.58
  18.12
  16.81
  15.63
  14.57
  13.61
  12.75
  11.97
  11.28
  10.65
  10.08
  9.58
  9.12
  8.71
  8.34
  8.00
  7.70
  7.43
  7.19
  6.97
  6.77
  6.60
  6.44
  6.29
  6.16
  6.05
  5.94
  5.85
  5.76
Revenue, $m
  13,311
  15,918
  18,802
  21,963
  25,396
  29,095
  33,054
  37,268
  41,731
  46,436
  51,381
  56,562
  61,978
  67,629
  73,517
  79,645
  86,018
  92,643
  99,528
  106,682
  114,117
  121,846
  129,882
  138,241
  146,940
  155,995
  165,428
  175,258
  185,507
  196,197
Variable operating expenses, $m
  10,812
  12,784
  14,967
  17,358
  19,956
  22,755
  25,751
  28,939
  32,316
  35,876
  38,878
  42,799
  46,897
  51,173
  55,628
  60,265
  65,087
  70,100
  75,309
  80,723
  86,349
  92,197
  98,278
  104,603
  111,185
  118,037
  125,174
  132,612
  140,367
  148,456
Fixed operating expenses, $m
  1,186
  1,212
  1,238
  1,265
  1,293
  1,322
  1,351
  1,381
  1,411
  1,442
  1,474
  1,506
  1,539
  1,573
  1,608
  1,643
  1,679
  1,716
  1,754
  1,793
  1,832
  1,872
  1,914
  1,956
  1,999
  2,043
  2,088
  2,133
  2,180
  2,228
Total operating expenses, $m
  11,998
  13,996
  16,205
  18,623
  21,249
  24,077
  27,102
  30,320
  33,727
  37,318
  40,352
  44,305
  48,436
  52,746
  57,236
  61,908
  66,766
  71,816
  77,063
  82,516
  88,181
  94,069
  100,192
  106,559
  113,184
  120,080
  127,262
  134,745
  142,547
  150,684
Operating income, $m
  1,314
  1,922
  2,597
  3,339
  4,147
  5,018
  5,953
  6,948
  8,004
  9,118
  11,029
  12,257
  13,542
  14,883
  16,281
  17,737
  19,252
  20,827
  22,464
  24,167
  25,936
  27,777
  29,691
  31,683
  33,756
  35,916
  38,166
  40,512
  42,959
  45,513
EBITDA, $m
  3,473
  4,359
  5,341
  6,420
  7,593
  8,859
  10,216
  11,661
  13,192
  14,807
  16,506
  18,287
  20,149
  22,092
  24,118
  26,227
  28,421
  30,702
  33,074
  35,539
  38,101
  40,765
  43,536
  46,419
  49,420
  52,545
  55,801
  59,195
  62,734
  66,427
Interest expense (income), $m
  190
  376
  526
  694
  880
  1,084
  1,305
  1,543
  1,799
  2,070
  2,358
  2,661
  2,980
  3,314
  3,663
  4,027
  4,407
  4,802
  5,213
  5,640
  6,084
  6,545
  7,024
  7,522
  8,040
  8,579
  9,140
  9,724
  10,332
  10,965
  11,626
Earnings before tax, $m
  938
  1,396
  1,904
  2,459
  3,063
  3,714
  4,409
  5,150
  5,934
  6,760
  8,368
  9,277
  10,228
  11,220
  12,254
  13,330
  14,450
  15,614
  16,824
  18,083
  19,392
  20,753
  22,169
  23,642
  25,177
  26,776
  28,443
  30,181
  31,994
  33,887
Tax expense, $m
  253
  377
  514
  664
  827
  1,003
  1,191
  1,390
  1,602
  1,825
  2,259
  2,505
  2,762
  3,029
  3,309
  3,599
  3,901
  4,216
  4,543
  4,882
  5,236
  5,603
  5,986
  6,383
  6,798
  7,230
  7,680
  8,149
  8,638
  9,149
Net income, $m
  684
  1,019
  1,390
  1,795
  2,236
  2,711
  3,219
  3,759
  4,332
  4,935
  6,108
  6,772
  7,466
  8,191
  8,945
  9,731
  10,548
  11,398
  12,282
  13,201
  14,156
  15,149
  16,183
  17,259
  18,379
  19,547
  20,763
  22,032
  23,355
  24,737

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  20,799
  24,872
  29,379
  34,317
  39,681
  45,460
  51,647
  58,232
  65,204
  72,556
  80,283
  88,378
  96,841
  105,671
  114,870
  124,445
  134,403
  144,754
  155,512
  166,691
  178,308
  190,384
  202,941
  216,002
  229,593
  243,743
  258,481
  273,840
  289,854
  306,558
Adjusted assets (=assets-cash), $m
  20,799
  24,872
  29,379
  34,317
  39,681
  45,460
  51,647
  58,232
  65,204
  72,556
  80,283
  88,378
  96,841
  105,671
  114,870
  124,445
  134,403
  144,754
  155,512
  166,691
  178,308
  190,384
  202,941
  216,002
  229,593
  243,743
  258,481
  273,840
  289,854
  306,558
Revenue / Adjusted assets
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
  0.640
Average production assets, $m
  14,190
  16,968
  20,043
  23,413
  27,072
  31,015
  35,236
  39,728
  44,485
  49,501
  54,772
  60,295
  66,069
  72,093
  78,369
  84,901
  91,695
  98,757
  106,096
  113,723
  121,649
  129,888
  138,454
  147,365
  156,638
  166,291
  176,346
  186,825
  197,750
  209,146
Working capital, $m
  -1,504
  -1,799
  -2,125
  -2,482
  -2,870
  -3,288
  -3,735
  -4,211
  -4,716
  -5,247
  -5,806
  -6,392
  -7,004
  -7,642
  -8,307
  -9,000
  -9,720
  -10,469
  -11,247
  -12,055
  -12,895
  -13,769
  -14,677
  -15,621
  -16,604
  -17,627
  -18,693
  -19,804
  -20,962
  -22,170
Total debt, $m
  9,738
  12,850
  16,293
  20,066
  24,164
  28,580
  33,307
  38,337
  43,664
  49,281
  55,184
  61,369
  67,834
  74,580
  81,609
  88,924
  96,532
  104,440
  112,659
  121,200
  130,076
  139,302
  148,895
  158,873
  169,257
  180,068
  191,328
  203,062
  215,296
  228,059
Total liabilities, $m
  15,890
  19,002
  22,445
  26,218
  30,316
  34,732
  39,459
  44,489
  49,816
  55,433
  61,336
  67,521
  73,986
  80,732
  87,761
  95,076
  102,684
  110,592
  118,811
  127,352
  136,228
  145,454
  155,047
  165,025
  175,409
  186,220
  197,480
  209,214
  221,448
  234,211
Total equity, $m
  4,909
  5,870
  6,933
  8,099
  9,365
  10,729
  12,189
  13,743
  15,388
  17,123
  18,947
  20,857
  22,854
  24,938
  27,109
  29,369
  31,719
  34,162
  36,701
  39,339
  42,081
  44,931
  47,894
  50,976
  54,184
  57,523
  61,002
  64,626
  68,406
  72,348
Total liabilities and equity, $m
  20,799
  24,872
  29,378
  34,317
  39,681
  45,461
  51,648
  58,232
  65,204
  72,556
  80,283
  88,378
  96,840
  105,670
  114,870
  124,445
  134,403
  144,754
  155,512
  166,691
  178,309
  190,385
  202,941
  216,001
  229,593
  243,743
  258,482
  273,840
  289,854
  306,559
Debt-to-equity ratio
  1.980
  2.190
  2.350
  2.480
  2.580
  2.660
  2.730
  2.790
  2.840
  2.880
  2.910
  2.940
  2.970
  2.990
  3.010
  3.030
  3.040
  3.060
  3.070
  3.080
  3.090
  3.100
  3.110
  3.120
  3.120
  3.130
  3.140
  3.140
  3.150
  3.150
Adjusted equity ratio
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236
  0.236

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  684
  1,019
  1,390
  1,795
  2,236
  2,711
  3,219
  3,759
  4,332
  4,935
  6,108
  6,772
  7,466
  8,191
  8,945
  9,731
  10,548
  11,398
  12,282
  13,201
  14,156
  15,149
  16,183
  17,259
  18,379
  19,547
  20,763
  22,032
  23,355
  24,737
Depreciation, amort., depletion, $m
  2,158
  2,436
  2,744
  3,081
  3,447
  3,841
  4,263
  4,712
  5,188
  5,690
  5,477
  6,030
  6,607
  7,209
  7,837
  8,490
  9,170
  9,876
  10,610
  11,372
  12,165
  12,989
  13,845
  14,737
  15,664
  16,629
  17,635
  18,682
  19,775
  20,915
Funds from operations, $m
  2,843
  3,456
  4,133
  4,876
  5,683
  6,552
  7,482
  8,472
  9,520
  10,624
  11,586
  12,802
  14,073
  15,400
  16,782
  18,221
  19,718
  21,274
  22,891
  24,573
  26,321
  28,138
  30,029
  31,996
  34,043
  36,176
  38,398
  40,714
  43,130
  45,652
Change in working capital, $m
  -263
  -295
  -326
  -357
  -388
  -418
  -447
  -476
  -504
  -532
  -559
  -585
  -612
  -639
  -665
  -692
  -720
  -749
  -778
  -808
  -840
  -873
  -908
  -945
  -983
  -1,023
  -1,066
  -1,111
  -1,158
  -1,208
Cash from operations, $m
  3,106
  3,750
  4,459
  5,233
  6,071
  6,970
  7,929
  8,948
  10,024
  11,156
  12,144
  13,387
  14,685
  16,038
  17,448
  18,914
  20,438
  22,023
  23,669
  25,381
  27,161
  29,011
  30,937
  32,940
  35,026
  37,199
  39,464
  41,825
  44,289
  46,860
Maintenance CAPEX, $m
  -1,171
  -1,419
  -1,697
  -2,004
  -2,341
  -2,707
  -3,101
  -3,524
  -3,973
  -4,448
  -4,950
  -5,477
  -6,030
  -6,607
  -7,209
  -7,837
  -8,490
  -9,170
  -9,876
  -10,610
  -11,372
  -12,165
  -12,989
  -13,845
  -14,737
  -15,664
  -16,629
  -17,635
  -18,682
  -19,775
New CAPEX, $m
  -2,479
  -2,778
  -3,075
  -3,369
  -3,659
  -3,943
  -4,221
  -4,492
  -4,757
  -5,016
  -5,271
  -5,523
  -5,773
  -6,024
  -6,276
  -6,532
  -6,794
  -7,062
  -7,339
  -7,627
  -7,926
  -8,239
  -8,567
  -8,911
  -9,273
  -9,654
  -10,055
  -10,479
  -10,925
  -11,396
Cash from investing activities, $m
  -3,650
  -4,197
  -4,772
  -5,373
  -6,000
  -6,650
  -7,322
  -8,016
  -8,730
  -9,464
  -10,221
  -11,000
  -11,803
  -12,631
  -13,485
  -14,369
  -15,284
  -16,232
  -17,215
  -18,237
  -19,298
  -20,404
  -21,556
  -22,756
  -24,010
  -25,318
  -26,684
  -28,114
  -29,607
  -31,171
Free cash flow, $m
  -544
  -447
  -312
  -140
  70
  319
  607
  932
  1,294
  1,691
  1,923
  2,387
  2,882
  3,408
  3,962
  4,544
  5,154
  5,791
  6,455
  7,145
  7,863
  8,608
  9,381
  10,184
  11,017
  11,882
  12,779
  13,712
  14,681
  15,689
Issuance/(repayment) of debt, $m
  2,767
  3,111
  3,444
  3,773
  4,098
  4,416
  4,727
  5,030
  5,327
  5,617
  5,903
  6,185
  6,465
  6,746
  7,029
  7,315
  7,608
  7,908
  8,219
  8,541
  8,876
  9,226
  9,593
  9,978
  10,384
  10,810
  11,260
  11,734
  12,234
  12,762
Issuance/(repurchase) of shares, $m
  178
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  2,945
  3,111
  3,444
  3,773
  4,098
  4,416
  4,727
  5,030
  5,327
  5,617
  5,903
  6,185
  6,465
  6,746
  7,029
  7,315
  7,608
  7,908
  8,219
  8,541
  8,876
  9,226
  9,593
  9,978
  10,384
  10,810
  11,260
  11,734
  12,234
  12,762
Total cash flow (excl. dividends), $m
  2,401
  2,664
  3,131
  3,633
  4,168
  4,735
  5,334
  5,963
  6,621
  7,309
  7,826
  8,572
  9,348
  10,154
  10,990
  11,860
  12,762
  13,699
  14,673
  15,686
  16,738
  17,834
  18,974
  20,162
  21,401
  22,692
  24,040
  25,446
  26,915
  28,451
Retained Cash Flow (-), $m
  -863
  -961
  -1,064
  -1,165
  -1,266
  -1,364
  -1,460
  -1,554
  -1,645
  -1,735
  -1,823
  -1,911
  -1,997
  -2,084
  -2,171
  -2,260
  -2,350
  -2,443
  -2,539
  -2,638
  -2,742
  -2,850
  -2,963
  -3,082
  -3,208
  -3,339
  -3,478
  -3,625
  -3,779
  -3,942
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  1,539
  1,703
  2,067
  2,467
  2,902
  3,371
  3,874
  4,409
  4,976
  5,574
  6,003
  6,662
  7,351
  8,070
  8,819
  9,600
  10,412
  11,256
  12,134
  13,047
  13,997
  14,984
  16,011
  17,080
  18,193
  19,353
  20,561
  21,821
  23,136
  24,508
Discount rate, %
  7.50
  7.88
  8.27
  8.68
  9.12
  9.57
  10.05
  10.55
  11.08
  11.63
  12.22
  12.83
  13.47
  14.14
  14.85
  15.59
  16.37
  17.19
  18.05
  18.95
  19.90
  20.89
  21.94
  23.04
  24.19
  25.40
  26.67
  28.00
  29.40
  30.87
PV of cash for distribution, $m
  1,431
  1,463
  1,629
  1,768
  1,876
  1,948
  1,981
  1,976
  1,932
  1,854
  1,689
  1,565
  1,422
  1,266
  1,105
  945
  791
  648
  519
  406
  310
  230
  167
  118
  81
  54
  35
  22
  13
  8
Current shareholders' claim on cash, %
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7
  98.7

Ball Corporation is a supplier of metal packaging to the beverage, food, personal care and household products industries. The Company's packaging products are produced for a range of end uses and are manufactured in facilities around the world. Its segments include beverage packaging, North and Central America; beverage packaging, South America; beverage packaging, Europe; food and aerosol packaging; aerospace, and other. Its major product line is aluminum and steel beverage containers. It produces steel food, aerosol and extruded aluminum aerosol containers and aluminum slugs. Its aerospace business designs, develops and manufactures aerospace systems for civil, commercial and national cyber security aerospace markets. It produces spacecraft, instruments and sensors, radio frequency systems and components, data exploitation solutions and a range of aerospace technologies and products.

FINANCIAL RATIOS  of  Ball (BLL)

Valuation Ratios
P/E Ratio 52.8
Price to Sales 1.5
Price to Book 4
Price to Tangible Book
Price to Cash Flow 71.6
Price to Free Cash Flow -33.7
Growth Rates
Sales Growth Rate 13.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 14.8%
Cap. Spend. - 3 Yr. Gr. Rate 9.9%
Financial Strength
Quick Ratio 3
Current Ratio 0.1
LT Debt to Equity 212.8%
Total Debt to Equity 219.3%
Interest Coverage 2
Management Effectiveness
Return On Assets 5%
Ret/ On Assets - 3 Yr. Avg. 5.8%
Return On Total Capital 3%
Ret/ On T. Cap. - 3 Yr. Avg. 6.3%
Return On Equity 11.2%
Return On Equity - 3 Yr. Avg. 25.8%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 19.5%
Gross Margin - 3 Yr. Avg. 19.4%
EBITDA Margin 8.5%
EBITDA Margin - 3 Yr. Avg. 10.3%
Operating Margin 5.1%
Oper. Margin - 3 Yr. Avg. 7.5%
Pre-Tax Margin 1.4%
Pre-Tax Margin - 3 Yr. Avg. 4.4%
Net Profit Margin 2.9%
Net Profit Margin - 3 Yr. Avg. 4%
Effective Tax Rate -100.8%
Eff/ Tax Rate - 3 Yr. Avg. -21.3%
Payout Ratio 31.6%

BLL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BLL stock intrinsic value calculation we used $10983 million for the last fiscal year's total revenue generated by Ball. The default revenue input number comes from 2017 income statement of Ball. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our BLL stock valuation model: a) initial revenue growth rate of 21.2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.5%, whose default value for BLL is calculated based on our internal credit rating of Ball, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Ball.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of BLL stock the variable cost ratio is equal to 82.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1160 million in the base year in the intrinsic value calculation for BLL stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Ball.

Corporate tax rate of 27% is the nominal tax rate for Ball. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the BLL stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for BLL are equal to 106.6%.

Life of production assets of 10 years is the average useful life of capital assets used in Ball operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for BLL is equal to -11.3%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $4046 million for Ball - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 350 million for Ball is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Ball at the current share price and the inputted number of shares is $13.9 billion.

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COMPANY NEWS

▶ Ball Corporation to Host Earnings Call   [Aug-02-18 09:00AM  ACCESSWIRE]
▶ Ball: 2Q Earnings Snapshot   [06:13AM  Associated Press]
▶ Canadian craft brewers scramble for aluminum cans   [Aug-01-18 07:00AM  Reuters]
▶ Canadian craft brewers scramble for aluminum cans   [Jul-31-18 04:00PM  Reuters]
▶ Ball Corporation Declares Quarterly Dividend   [Jul-25-18 04:15PM  PR Newswire]
▶ [$$] Ball to End Production at Cuiaba, Brazil, Beverage Can Plant   [Jul-05-18 01:19PM  The Wall Street Journal]
▶ Ball shutting down Brazilian packaging plant   [08:49AM  American City Business Journals]
▶ Ball Corp. spinoff packaging entity includes Columbus plant   [Jun-22-18 02:45PM  American City Business Journals]
▶ Ball Corp. to form new packaging entity in $675 million deal   [08:29AM  American City Business Journals]
▶ [$$] Ball Corp. Forms Steel Packaging Venture With Platinum Equity   [Jun-21-18 06:15PM  The Wall Street Journal]
▶ These 10 Colorado companies landed on the 2018 Fortune 500   [May-21-18 02:33PM  American City Business Journals]
▶ Ball: 1Q Earnings Snapshot   [06:11AM  Associated Press]
▶ Ball to Pop Top on Cameo Beverage Can End Printing   [Apr-26-18 02:00PM  PR Newswire]
▶ [$$] Census by Jesse Ball incredible journey   [Apr-05-18 09:51PM  Financial Times]
▶ Ball to Announce First Quarter Earnings on May 3, 2018   [Apr-02-18 09:06AM  PR Newswire]
▶ 21 Stocks to Beat a Bear Market   [Mar-28-18 10:29AM  Barrons.com]
▶ Op-Ed: Molson Coors, Ball CEOs say aluminum tariffs 'not making America great again'   [Mar-07-18 05:18PM  American City Business Journals]
▶ Ball Corporation Prices $750 Million of Senior Notes   [Mar-06-18 03:43PM  PR Newswire]
▶ Weekly Top Insider Buys Highlight for the Week of March 2   [Mar-03-18 08:40PM  GuruFocus.com]
▶ Company News For Feb 8, 2018   [Feb-08-18 09:06AM  Zacks]
▶ Should Ball Corporations (NYSE:BLL) Recent Earnings Worry You?   [Feb-07-18 01:22PM  Simply Wall St.]
▶ Ball Corporation to Host Earnings Call   [08:45AM  ACCESSWIRE]
▶ Ball beats Street 4Q forecasts   [06:23AM  Associated Press]
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