Intrinsic value of Ball - BLL

Previous Close

$42.30

  Intrinsic Value

$151.69

stock screener

  Rating & Target

str. buy

+259%

  Value-price divergence*

-42%

Previous close

$42.30

 
Intrinsic value

$151.69

 
Up/down potential

+259%

 
Rating

str. buy

 
Value-price divergence*

-42%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

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 2016), $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 14.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   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

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  13.30
  40.60
  37.04
  33.84
  30.95
  28.36
  26.02
  23.92
  22.03
  20.32
  18.79
  17.41
  16.17
  15.05
  14.05
  13.14
  12.33
  11.60
  10.94
  10.34
  9.81
  9.33
  8.90
  8.51
  8.16
  7.84
  7.56
  7.30
  7.07
  6.86
  6.68
Revenue, $m
  9,061
  12,740
  17,459
  23,366
  30,598
  39,275
  49,495
  61,334
  74,844
  90,056
  106,979
  125,607
  145,920
  167,887
  191,474
  216,642
  243,353
  271,574
  301,276
  332,438
  365,047
  399,099
  434,600
  471,567
  510,024
  550,008
  591,565
  634,750
  679,628
  726,272
  774,763
Variable operating expenses, $m
 
  11,565
  15,660
  20,786
  27,062
  34,591
  43,460
  53,733
  65,457
  78,657
  93,343
  108,998
  126,625
  145,688
  166,155
  187,995
  211,174
  235,664
  261,438
  288,480
  316,777
  346,326
  377,133
  409,211
  442,583
  477,281
  513,343
  550,817
  589,761
  630,237
  672,316
Fixed operating expenses, $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 operating expenses, $m
  8,598
  11,565
  15,660
  20,786
  27,062
  34,591
  43,460
  53,733
  65,457
  78,657
  93,343
  108,998
  126,625
  145,688
  166,155
  187,995
  211,174
  235,664
  261,438
  288,480
  316,777
  346,326
  377,133
  409,211
  442,583
  477,281
  513,343
  550,817
  589,761
  630,237
  672,316
Operating income, $m
  463
  1,175
  1,799
  2,580
  3,536
  4,684
  6,035
  7,601
  9,387
  11,399
  13,636
  16,609
  19,295
  22,200
  25,319
  28,647
  32,179
  35,910
  39,838
  43,958
  48,270
  52,773
  57,467
  62,355
  67,440
  72,728
  78,223
  83,933
  89,867
  96,035
  102,447
EBITDA, $m
  916
  2,040
  2,796
  3,742
  4,900
  6,290
  7,926
  9,822
  11,986
  14,422
  17,132
  20,115
  23,368
  26,886
  30,663
  34,693
  38,971
  43,490
  48,247
  53,237
  58,459
  63,913
  69,598
  75,518
  81,676
  88,079
  94,734
  101,650
  108,837
  116,307
  124,072
Interest expense (income), $m
  190
  256
  434
  662
  948
  1,297
  1,717
  2,211
  2,783
  3,437
  4,172
  4,990
  5,891
  6,873
  7,935
  9,076
  10,293
  11,584
  12,949
  14,385
  15,891
  17,468
  19,114
  20,831
  22,618
  24,478
  26,411
  28,420
  30,508
  32,678
  34,933
Earnings before tax, $m
  125
  919
  1,365
  1,918
  2,589
  3,387
  4,318
  5,390
  6,604
  7,962
  9,464
  11,619
  13,404
  15,327
  17,383
  19,571
  21,886
  24,326
  26,889
  29,574
  32,379
  35,305
  38,353
  41,524
  44,822
  48,250
  51,812
  55,513
  59,359
  63,357
  67,514
Tax expense, $m
  -126
  248
  369
  518
  699
  914
  1,166
  1,455
  1,783
  2,150
  2,555
  3,137
  3,619
  4,138
  4,694
  5,284
  5,909
  6,568
  7,260
  7,985
  8,742
  9,532
  10,355
  11,212
  12,102
  13,027
  13,989
  14,988
  16,027
  17,106
  18,229
Net income, $m
  263
  671
  997
  1,400
  1,890
  2,472
  3,152
  3,935
  4,821
  5,812
  6,909
  8,482
  9,785
  11,188
  12,690
  14,287
  15,977
  17,758
  19,629
  21,589
  23,637
  25,773
  27,998
  30,313
  32,720
  35,222
  37,823
  40,524
  43,332
  46,250
  49,285

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  597
  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
  16,173
  21,890
  29,998
  40,148
  52,574
  67,483
  85,043
  105,384
  128,598
  154,735
  183,813
  215,820
  250,721
  288,466
  328,993
  372,236
  418,132
  466,622
  517,657
  571,200
  627,229
  685,738
  746,736
  810,252
  876,330
  945,031
  1,016,435
  1,090,636
  1,167,746
  1,247,889
  1,331,209
Adjusted assets (=assets-cash), $m
  15,576
  21,890
  29,998
  40,148
  52,574
  67,483
  85,043
  105,384
  128,598
  154,735
  183,813
  215,820
  250,721
  288,466
  328,993
  372,236
  418,132
  466,622
  517,657
  571,200
  627,229
  685,738
  746,736
  810,252
  876,330
  945,031
  1,016,435
  1,090,636
  1,167,746
  1,247,889
  1,331,209
Revenue / Adjusted assets
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
  0.582
Average production assets, $m
  4,601
  6,472
  8,869
  11,870
  15,544
  19,952
  25,143
  31,157
  38,021
  45,748
  54,345
  63,808
  74,127
  85,287
  97,269
  110,054
  123,623
  137,960
  153,048
  168,879
  185,444
  202,742
  220,777
  239,556
  259,092
  279,404
  300,515
  322,453
  345,251
  368,946
  393,580
Working capital, $m
  684
  433
  594
  794
  1,040
  1,335
  1,683
  2,085
  2,545
  3,062
  3,637
  4,271
  4,961
  5,708
  6,510
  7,366
  8,274
  9,234
  10,243
  11,303
  12,412
  13,569
  14,776
  16,033
  17,341
  18,700
  20,113
  21,582
  23,107
  24,693
  26,342
Total debt, $m
  7,532
  12,393
  18,912
  27,073
  37,064
  49,050
  63,168
  79,523
  98,186
  119,201
  142,579
  168,313
  196,374
  226,721
  259,304
  294,072
  330,972
  369,958
  410,990
  454,039
  499,086
  546,127
  595,170
  646,237
  699,363
  754,599
  812,008
  871,666
  933,662
  998,097
  1,065,086
Total liabilities, $m
  12,738
  17,599
  24,118
  32,279
  42,270
  54,256
  68,374
  84,729
  103,392
  124,407
  147,785
  173,519
  201,580
  231,927
  264,510
  299,278
  336,178
  375,164
  416,196
  459,245
  504,292
  551,333
  600,376
  651,443
  704,569
  759,805
  817,214
  876,872
  938,868
  1,003,303
  1,070,292
Total equity, $m
  3,435
  4,290
  5,880
  7,869
  10,305
  13,227
  16,668
  20,655
  25,205
  30,328
  36,027
  42,301
  49,141
  56,539
  64,483
  72,958
  81,954
  91,458
  101,461
  111,955
  122,937
  134,405
  146,360
  158,809
  171,761
  185,226
  199,221
  213,765
  228,878
  244,586
  260,917
Total liabilities and equity, $m
  16,173
  21,889
  29,998
  40,148
  52,575
  67,483
  85,042
  105,384
  128,597
  154,735
  183,812
  215,820
  250,721
  288,466
  328,993
  372,236
  418,132
  466,622
  517,657
  571,200
  627,229
  685,738
  746,736
  810,252
  876,330
  945,031
  1,016,435
  1,090,637
  1,167,746
  1,247,889
  1,331,209
Debt-to-equity ratio
  2.193
  2.890
  3.220
  3.440
  3.600
  3.710
  3.790
  3.850
  3.900
  3.930
  3.960
  3.980
  4.000
  4.010
  4.020
  4.030
  4.040
  4.050
  4.050
  4.060
  4.060
  4.060
  4.070
  4.070
  4.070
  4.070
  4.080
  4.080
  4.080
  4.080
  4.080
Adjusted equity ratio
  0.182
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196
  0.196

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  263
  671
  997
  1,400
  1,890
  2,472
  3,152
  3,935
  4,821
  5,812
  6,909
  8,482
  9,785
  11,188
  12,690
  14,287
  15,977
  17,758
  19,629
  21,589
  23,637
  25,773
  27,998
  30,313
  32,720
  35,222
  37,823
  40,524
  43,332
  46,250
  49,285
Depreciation, amort., depletion, $m
  453
  865
  997
  1,162
  1,364
  1,606
  1,891
  2,221
  2,599
  3,023
  3,496
  3,506
  4,073
  4,686
  5,344
  6,047
  6,792
  7,580
  8,409
  9,279
  10,189
  11,140
  12,131
  13,162
  14,236
  15,352
  16,512
  17,717
  18,970
  20,272
  21,625
Funds from operations, $m
  -315
  1,536
  1,993
  2,562
  3,253
  4,078
  5,043
  6,156
  7,419
  8,835
  10,404
  11,988
  13,858
  15,875
  18,034
  20,334
  22,769
  25,338
  28,038
  30,868
  33,826
  36,912
  40,128
  43,475
  46,956
  50,574
  54,334
  58,242
  62,302
  66,522
  70,910
Change in working capital, $m
  -509
  125
  160
  201
  246
  295
  347
  403
  459
  517
  575
  633
  691
  747
  802
  856
  908
  960
  1,010
  1,060
  1,109
  1,158
  1,207
  1,257
  1,308
  1,359
  1,413
  1,468
  1,526
  1,586
  1,649
Cash from operations, $m
  194
  1,411
  1,833
  2,361
  3,008
  3,783
  4,696
  5,753
  6,960
  8,318
  9,829
  11,354
  13,167
  15,128
  17,232
  19,478
  21,861
  24,379
  27,028
  29,808
  32,717
  35,754
  38,921
  42,218
  45,648
  49,215
  52,921
  56,773
  60,776
  64,936
  69,261
Maintenance CAPEX, $m
  0
  -253
  -356
  -487
  -652
  -854
  -1,096
  -1,382
  -1,712
  -2,089
  -2,514
  -2,986
  -3,506
  -4,073
  -4,686
  -5,344
  -6,047
  -6,792
  -7,580
  -8,409
  -9,279
  -10,189
  -11,140
  -12,131
  -13,162
  -14,236
  -15,352
  -16,512
  -17,717
  -18,970
  -20,272
New CAPEX, $m
  -606
  -1,871
  -2,397
  -3,001
  -3,674
  -4,408
  -5,192
  -6,014
  -6,863
  -7,728
  -8,597
  -9,463
  -10,319
  -11,159
  -11,982
  -12,785
  -13,569
  -14,336
  -15,089
  -15,830
  -16,565
  -17,298
  -18,035
  -18,779
  -19,536
  -20,312
  -21,111
  -21,938
  -22,798
  -23,695
  -24,634
Cash from investing activities, $m
  672
  -2,124
  -2,753
  -3,488
  -4,326
  -5,262
  -6,288
  -7,396
  -8,575
  -9,817
  -11,111
  -12,449
  -13,825
  -15,232
  -16,668
  -18,129
  -19,616
  -21,128
  -22,669
  -24,239
  -25,844
  -27,487
  -29,175
  -30,910
  -32,698
  -34,548
  -36,463
  -38,450
  -40,515
  -42,665
  -44,906
Free cash flow, $m
  866
  -713
  -920
  -1,127
  -1,319
  -1,479
  -1,592
  -1,642
  -1,615
  -1,498
  -1,282
  -1,095
  -658
  -105
  564
  1,348
  2,245
  3,250
  4,360
  5,569
  6,873
  8,267
  9,747
  11,309
  12,950
  14,667
  16,459
  18,323
  20,261
  22,271
  24,356
Issuance/(repayment) of debt, $m
  -231
  5,083
  6,519
  8,161
  9,991
  11,986
  14,118
  16,355
  18,664
  21,014
  23,379
  25,734
  28,061
  30,347
  32,584
  34,768
  36,900
  38,986
  41,032
  43,049
  45,047
  47,041
  49,043
  51,067
  53,126
  55,236
  57,409
  59,658
  61,996
  64,436
  66,989
Issuance/(repurchase) of shares, $m
  -59
  559
  592
  589
  546
  450
  289
  52
  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  
  -304
  5,642
  7,111
  8,750
  10,537
  12,436
  14,407
  16,407
  18,664
  21,014
  23,379
  25,734
  28,061
  30,347
  32,584
  34,768
  36,900
  38,986
  41,032
  43,049
  45,047
  47,041
  49,043
  51,067
  53,126
  55,236
  57,409
  59,658
  61,996
  64,436
  66,989
Total cash flow (excl. dividends), $m
  456
  4,930
  6,192
  7,623
  9,218
  10,957
  12,816
  14,765
  17,048
  19,516
  22,097
  24,639
  27,403
  30,242
  33,148
  36,116
  39,145
  42,236
  45,392
  48,617
  51,920
  55,308
  58,790
  62,376
  66,076
  69,903
  73,867
  77,981
  82,257
  86,707
  91,344
Retained Cash Flow (-), $m
  -2,184
  -1,230
  -1,589
  -1,989
  -2,436
  -2,922
  -3,442
  -3,987
  -4,550
  -5,123
  -5,699
  -6,273
  -6,841
  -7,398
  -7,943
  -8,476
  -8,996
  -9,504
  -10,003
  -10,494
  -10,982
  -11,468
  -11,956
  -12,449
  -12,951
  -13,465
  -13,995
  -14,543
  -15,113
  -15,708
  -16,331
Prev. year cash balance distribution, $m
 
  375
  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
 
  4,075
  4,602
  5,633
  6,782
  8,035
  9,374
  10,778
  12,499
  14,393
  16,398
  18,366
  20,563
  22,844
  25,205
  27,640
  30,149
  32,732
  35,389
  38,123
  40,938
  43,840
  46,834
  49,926
  53,125
  56,437
  59,872
  63,438
  67,143
  70,999
  75,014
Discount rate, %
 
  10.10
  10.61
  11.14
  11.69
  12.28
  12.89
  13.53
  14.21
  14.92
  15.67
  16.45
  17.27
  18.14
  19.05
  20.00
  21.00
  22.05
  23.15
  24.31
  25.52
  26.80
  28.14
  29.55
  31.02
  32.57
  34.20
  35.91
  37.71
  39.59
  41.57
PV of cash for distribution, $m
 
  3,701
  3,762
  4,104
  4,358
  4,504
  4,529
  4,432
  4,317
  4,116
  3,825
  3,439
  3,038
  2,616
  2,195
  1,795
  1,428
  1,107
  834
  611
  434
  300
  200
  130
  81
  49
  29
  16
  9
  4
  2
Current shareholders' claim on cash, %
  100
  96.0
  93.0
  90.9
  89.5
  88.6
  88.1
  88.1
  88.1
  88.1
  88.1
  88.1
  88.1
  88.1
  88.1
  88.1
  88.1
  88.1
  88.1
  88.1
  88.1
  88.1
  88.1
  88.1
  88.1
  88.1
  88.1
  88.1
  88.1
  88.1
  88.1

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 56.2
Price to Sales 1.6
Price to Book 4.3
Price to Tangible Book
Price to Cash Flow 76.3
Price to Free Cash Flow -35.9
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 $9061 million for the last fiscal year's total revenue generated by Ball. The default revenue input number comes from 2016 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 40.6% 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 10.1%, 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 92.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 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 3.5% 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 50.8%.

Life of production assets of 18.2 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 3.4%. 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 - $3435 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 352.672 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 $14.9 billion.

RELATED COMPANIES Price Int.Val. Rating
CCK Crown Holdings 60.87 31.60  sell
SLGN Silgan Holding 28.61 43.02  buy
GEF Greif Cl A 56.57 36.23  sell
TAP Molson Coors B 83.25 95.56  hold
BA Boeing 264.75 75.33  str.sell

COMPANY NEWS

▶ Eastside Distilling has started a new income stream with the canning line!   [Oct-13-17 11:30AM  Zacks Small Cap Research]
▶ Ball to Announce Third Quarter Earnings on Nov. 2, 2017   [Oct-02-17 06:42PM  PR Newswire]
▶ Can giant Ball Corp. to build a new plant in Goodyear   [Sep-26-17 02:20PM  American City Business Journals]
▶ Bear Of The Day: Ball Corporation (BLL)   [Sep-15-17 06:04AM  Zacks]
▶ ETFs with exposure to Ball Corp. : September 12, 2017   [Sep-11-17 09:44PM  Capital Cube]
▶ [$$] Goal Oriented   [Sep-04-17 05:56PM  The Wall Street Journal]
▶ Large packaging company to close Birmingham plant   [Aug-31-17 03:00PM  American City Business Journals]
▶ Ball Corp. to close 3 U.S. plants; will build a new one in Arizona   [01:19PM  American City Business Journals]
▶ New Strong Sell Stocks for August 21st   [Aug-21-17 10:06AM  Zacks]
▶ Ball Corp. Value Analysis (NYSE:BLL) : August 16, 2017   [Aug-16-17 07:59PM  Capital Cube]
▶ New Strong Sell Stocks for August 15th   [Aug-15-17 10:14AM  Zacks]
▶ New Strong Sell Stocks for August 8th   [Aug-08-17 07:36AM  Zacks]
▶ Ball Announces $100 Million Accelerated Stock Repurchase   [Aug-07-17 06:00AM  PR Newswire]
▶ Ball misses 2Q profit forecasts   [02:28AM  Associated Press]
▶ ETFs with exposure to Ball Corp. : August 1, 2017   [Aug-01-17 04:18PM  Capital Cube]
▶ Ball Corporation Declares Quarterly Dividend   [Jul-26-17 04:15PM  PR Newswire]
▶ Ohio brewery producing 2M cans of water for disaster victims   [Jul-23-17 12:30PM  Associated Press]
▶ Smart Money Backing A Marijuana Boom In 2017   [Jul-18-17 07:30PM  Oilprice.com]
▶ ETFs with exposure to Ball Corp. : July 13, 2017   [Jul-13-17 03:39PM  Capital Cube]
▶ ETFs with exposure to Ball Corp. : July 3, 2017   [Jul-03-17 02:57PM  Capital Cube]
▶ Ball tops Street 1Q forecasts   [06:08AM  Associated Press]
▶ Bullish and Bearish Reversals for This Week   [May-01-17 01:15PM  TheStreet.com]
▶ Ball Corp. Value Analysis (NYSE:BLL) : April 25, 2017   [Apr-25-17 04:05PM  Capital Cube]
Financial statements of BLL
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.