Intrinsic value of Crown Holdings - CCK

Previous Close

$46.17

  Intrinsic Value

$395.16

stock screener

  Rating & Target

str. buy

+756%

Previous close

$46.17

 
Intrinsic value

$395.16

 
Up/down potential

+756%

 
Rating

str. buy

We calculate the intrinsic value of CCK 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 0001), $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 6.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  41.00
  37.40
  34.16
  31.24
  28.62
  26.26
  24.13
  22.22
  20.50
  18.95
  17.55
  16.30
  15.17
  14.15
  13.24
  12.41
  11.67
  11.00
  10.40
  9.86
  9.38
  8.94
  8.55
  8.19
  7.87
  7.58
  7.33
  7.09
  6.88
  6.70
Revenue, $m
  12,264
  16,851
  22,607
  29,671
  38,162
  48,183
  59,810
  73,099
  88,082
  104,771
  123,161
  143,233
  164,958
  188,301
  213,224
  239,689
  267,663
  297,116
  328,026
  360,380
  394,172
  429,407
  466,101
  504,277
  543,972
  585,229
  628,103
  672,657
  718,963
  767,102
Variable operating expenses, $m
  10,464
  14,246
  18,993
  24,817
  31,819
  40,081
  49,669
  60,626
  72,980
  86,742
  101,553
  118,104
  136,017
  155,264
  175,814
  197,637
  220,703
  244,988
  270,475
  297,153
  325,016
  354,069
  384,325
  415,804
  448,534
  482,553
  517,905
  554,642
  592,824
  632,517
Fixed operating expenses, $m
  104
  107
  109
  111
  114
  116
  119
  121
  124
  127
  130
  132
  135
  138
  141
  144
  148
  151
  154
  158
  161
  165
  168
  172
  176
  180
  184
  188
  192
  196
Total operating expenses, $m
  10,568
  14,353
  19,102
  24,928
  31,933
  40,197
  49,788
  60,747
  73,104
  86,869
  101,683
  118,236
  136,152
  155,402
  175,955
  197,781
  220,851
  245,139
  270,629
  297,311
  325,177
  354,234
  384,493
  415,976
  448,710
  482,733
  518,089
  554,830
  593,016
  632,713
Operating income, $m
  1,696
  2,498
  3,506
  4,743
  6,230
  7,985
  10,023
  12,352
  14,978
  17,903
  21,479
  24,997
  28,806
  32,898
  37,268
  41,908
  46,813
  51,977
  57,397
  63,070
  68,995
  75,173
  81,607
  88,302
  95,262
  102,497
  110,015
  117,827
  125,947
  134,389
EBITDA, $m
  2,304
  3,202
  4,330
  5,714
  7,379
  9,344
  11,624
  14,230
  17,169
  20,443
  24,051
  27,989
  32,251
  36,831
  41,721
  46,914
  52,403
  58,182
  64,247
  70,596
  77,227
  84,141
  91,342
  98,833
  106,623
  114,719
  123,132
  131,876
  140,963
  150,410
Interest expense (income), $m
  217
  289
  476
  749
  1,092
  1,512
  2,018
  2,615
  3,307
  4,099
  4,991
  5,985
  7,081
  8,276
  9,570
  10,960
  12,445
  14,021
  15,687
  17,441
  19,282
  21,209
  23,222
  25,320
  27,506
  29,779
  32,144
  34,601
  37,154
  39,808
  42,566
Earnings before tax, $m
  1,407
  2,022
  2,757
  3,651
  4,718
  5,967
  7,408
  9,044
  10,879
  12,912
  15,493
  17,917
  20,530
  23,328
  26,308
  29,464
  32,792
  36,290
  39,956
  43,788
  47,786
  51,952
  56,287
  60,796
  65,483
  70,353
  75,414
  80,673
  86,140
  91,823
Tax expense, $m
  380
  546
  744
  986
  1,274
  1,611
  2,000
  2,442
  2,937
  3,486
  4,183
  4,838
  5,543
  6,299
  7,103
  7,955
  8,854
  9,798
  10,788
  11,823
  12,902
  14,027
  15,198
  16,415
  17,680
  18,995
  20,362
  21,782
  23,258
  24,792
Net income, $m
  1,027
  1,476
  2,013
  2,665
  3,444
  4,356
  5,408
  6,602
  7,942
  9,426
  11,310
  13,079
  14,987
  17,030
  19,205
  21,508
  23,938
  26,492
  29,168
  31,965
  34,884
  37,925
  41,090
  44,381
  47,802
  51,358
  55,052
  58,891
  62,882
  67,031

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
  15,030
  20,651
  27,705
  36,361
  46,768
  59,048
  73,297
  89,583
  107,944
  128,396
  150,933
  175,531
  202,155
  230,761
  261,304
  293,737
  328,018
  364,113
  401,993
  441,642
  483,054
  526,234
  571,202
  617,987
  666,632
  717,193
  769,734
  824,334
  881,082
  940,076
Adjusted assets (=assets-cash), $m
  15,030
  20,651
  27,705
  36,361
  46,768
  59,048
  73,297
  89,583
  107,944
  128,396
  150,933
  175,531
  202,155
  230,761
  261,304
  293,737
  328,018
  364,113
  401,993
  441,642
  483,054
  526,234
  571,202
  617,987
  666,632
  717,193
  769,734
  824,334
  881,082
  940,076
Revenue / Adjusted assets
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
  0.816
Average production assets, $m
  6,659
  9,150
  12,276
  16,111
  20,722
  26,163
  32,477
  39,693
  47,829
  56,891
  66,877
  77,776
  89,572
  102,247
  115,780
  130,151
  145,341
  161,334
  178,118
  195,686
  214,035
  233,168
  253,093
  273,823
  295,377
  317,779
  341,060
  365,253
  390,397
  416,536
Working capital, $m
  -662
  -910
  -1,221
  -1,602
  -2,061
  -2,602
  -3,230
  -3,947
  -4,756
  -5,658
  -6,651
  -7,735
  -8,908
  -10,168
  -11,514
  -12,943
  -14,454
  -16,044
  -17,713
  -19,461
  -21,285
  -23,188
  -25,169
  -27,231
  -29,374
  -31,602
  -33,918
  -36,323
  -38,824
  -41,424
Total debt, $m
  8,808
  13,867
  20,215
  28,006
  37,372
  48,424
  61,248
  75,905
  92,431
  110,838
  131,121
  153,259
  177,220
  202,966
  230,454
  259,644
  290,498
  322,983
  357,075
  392,759
  430,029
  468,892
  509,363
  551,469
  595,250
  640,754
  688,042
  737,182
  788,255
  841,349
Total liabilities, $m
  13,527
  18,586
  24,934
  32,725
  42,091
  53,143
  65,967
  80,624
  97,150
  115,557
  135,840
  157,978
  181,939
  207,685
  235,173
  264,363
  295,217
  327,702
  361,794
  397,478
  434,748
  473,611
  514,082
  556,188
  599,969
  645,473
  692,761
  741,901
  792,974
  846,068
Total equity, $m
  1,503
  2,065
  2,770
  3,636
  4,677
  5,905
  7,330
  8,958
  10,794
  12,840
  15,093
  17,553
  20,215
  23,076
  26,130
  29,374
  32,802
  36,411
  40,199
  44,164
  48,305
  52,623
  57,120
  61,799
  66,663
  71,719
  76,973
  82,433
  88,108
  94,008
Total liabilities and equity, $m
  15,030
  20,651
  27,704
  36,361
  46,768
  59,048
  73,297
  89,582
  107,944
  128,397
  150,933
  175,531
  202,154
  230,761
  261,303
  293,737
  328,019
  364,113
  401,993
  441,642
  483,053
  526,234
  571,202
  617,987
  666,632
  717,192
  769,734
  824,334
  881,082
  940,076
Debt-to-equity ratio
  5.860
  6.710
  7.300
  7.700
  7.990
  8.200
  8.360
  8.470
  8.560
  8.630
  8.690
  8.730
  8.770
  8.800
  8.820
  8.840
  8.860
  8.870
  8.880
  8.890
  8.900
  8.910
  8.920
  8.920
  8.930
  8.930
  8.940
  8.940
  8.950
  8.950
Adjusted equity ratio
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,027
  1,476
  2,013
  2,665
  3,444
  4,356
  5,408
  6,602
  7,942
  9,426
  11,310
  13,079
  14,987
  17,030
  19,205
  21,508
  23,938
  26,492
  29,168
  31,965
  34,884
  37,925
  41,090
  44,381
  47,802
  51,358
  55,052
  58,891
  62,882
  67,031
Depreciation, amort., depletion, $m
  608
  704
  824
  971
  1,149
  1,358
  1,601
  1,878
  2,191
  2,540
  2,572
  2,991
  3,445
  3,933
  4,453
  5,006
  5,590
  6,205
  6,851
  7,526
  8,232
  8,968
  9,734
  10,532
  11,361
  12,222
  13,118
  14,048
  15,015
  16,021
Funds from operations, $m
  1,635
  2,180
  2,836
  3,637
  4,593
  5,714
  7,009
  8,481
  10,133
  11,966
  13,882
  16,071
  18,432
  20,962
  23,658
  26,514
  29,528
  32,697
  36,018
  39,491
  43,116
  46,893
  50,824
  54,913
  59,163
  63,580
  68,170
  72,940
  77,897
  83,052
Change in working capital, $m
  -193
  -248
  -311
  -381
  -459
  -541
  -628
  -718
  -809
  -901
  -993
  -1,084
  -1,173
  -1,261
  -1,346
  -1,429
  -1,511
  -1,590
  -1,669
  -1,747
  -1,825
  -1,903
  -1,981
  -2,062
  -2,144
  -2,228
  -2,315
  -2,406
  -2,501
  -2,600
Cash from operations, $m
  1,828
  2,428
  3,147
  4,018
  5,051
  6,255
  7,637
  9,198
  10,942
  12,867
  14,875
  17,154
  19,605
  22,223
  25,004
  27,943
  31,039
  34,287
  37,687
  41,238
  44,941
  48,795
  52,805
  56,974
  61,307
  65,808
  70,485
  75,345
  80,398
  85,651
Maintenance CAPEX, $m
  -182
  -256
  -352
  -472
  -620
  -797
  -1,006
  -1,249
  -1,527
  -1,840
  -2,188
  -2,572
  -2,991
  -3,445
  -3,933
  -4,453
  -5,006
  -5,590
  -6,205
  -6,851
  -7,526
  -8,232
  -8,968
  -9,734
  -10,532
  -11,361
  -12,222
  -13,118
  -14,048
  -15,015
New CAPEX, $m
  -1,935
  -2,491
  -3,126
  -3,835
  -4,611
  -5,441
  -6,314
  -7,216
  -8,136
  -9,062
  -9,986
  -10,899
  -11,797
  -12,675
  -13,533
  -14,371
  -15,190
  -15,993
  -16,784
  -17,568
  -18,349
  -19,133
  -19,925
  -20,730
  -21,554
  -22,403
  -23,280
  -24,193
  -25,144
  -26,140
Cash from investing activities, $m
  -2,117
  -2,747
  -3,478
  -4,307
  -5,231
  -6,238
  -7,320
  -8,465
  -9,663
  -10,902
  -12,174
  -13,471
  -14,788
  -16,120
  -17,466
  -18,824
  -20,196
  -21,583
  -22,989
  -24,419
  -25,875
  -27,365
  -28,893
  -30,464
  -32,086
  -33,764
  -35,502
  -37,311
  -39,192
  -41,155
Free cash flow, $m
  -289
  -319
  -330
  -290
  -179
  17
  317
  733
  1,280
  1,965
  2,702
  3,683
  4,817
  6,103
  7,538
  9,119
  10,843
  12,704
  14,698
  16,820
  19,065
  21,430
  23,913
  26,510
  29,221
  32,045
  34,982
  38,035
  41,205
  44,496
Issuance/(repayment) of debt, $m
  3,465
  5,059
  6,349
  7,791
  9,366
  11,052
  12,824
  14,657
  16,525
  18,407
  20,283
  22,138
  23,961
  25,746
  27,488
  29,190
  30,853
  32,485
  34,092
  35,684
  37,271
  38,863
  40,471
  42,107
  43,781
  45,504
  47,287
  49,140
  51,073
  53,095
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  3,465
  5,059
  6,349
  7,791
  9,366
  11,052
  12,824
  14,657
  16,525
  18,407
  20,283
  22,138
  23,961
  25,746
  27,488
  29,190
  30,853
  32,485
  34,092
  35,684
  37,271
  38,863
  40,471
  42,107
  43,781
  45,504
  47,287
  49,140
  51,073
  53,095
Total cash flow (excl. dividends), $m
  3,176
  4,740
  6,019
  7,501
  9,186
  11,069
  13,141
  15,390
  17,805
  20,372
  22,985
  25,821
  28,778
  31,848
  35,026
  38,309
  41,697
  45,189
  48,790
  52,504
  56,336
  60,293
  64,384
  68,617
  73,002
  77,549
  82,270
  87,175
  92,278
  97,591
Retained Cash Flow (-), $m
  -902
  -562
  -705
  -866
  -1,041
  -1,228
  -1,425
  -1,629
  -1,836
  -2,045
  -2,254
  -2,460
  -2,662
  -2,861
  -3,054
  -3,243
  -3,428
  -3,609
  -3,788
  -3,965
  -4,141
  -4,318
  -4,497
  -4,679
  -4,865
  -5,056
  -5,254
  -5,460
  -5,675
  -5,899
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
  2,274
  4,178
  5,313
  6,635
  8,146
  9,841
  11,716
  13,762
  15,969
  18,327
  20,731
  23,362
  26,116
  28,988
  31,972
  35,066
  38,268
  41,580
  45,002
  48,539
  52,194
  55,975
  59,887
  63,938
  68,137
  72,493
  77,015
  81,715
  86,603
  91,692
Discount rate, %
  11.40
  11.97
  12.57
  13.20
  13.86
  14.55
  15.28
  16.04
  16.84
  17.69
  18.57
  19.50
  20.47
  21.50
  22.57
  23.70
  24.88
  26.13
  27.44
  28.81
  30.25
  31.76
  33.35
  35.02
  36.77
  38.60
  40.53
  42.56
  44.69
  46.92
PV of cash for distribution, $m
  2,041
  3,332
  3,725
  4,041
  4,257
  4,356
  4,331
  4,186
  3,934
  3,596
  3,184
  2,755
  2,319
  1,898
  1,510
  1,167
  875
  637
  449
  307
  203
  130
  80
  47
  27
  15
  8
  4
  2
  1
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Crown Holdings, Inc. is engaged in the design, manufacture and sale of packaging products for consumer goods. The Company's business is organized within three divisions: Americas, Europe and Asia Pacific. Within each division, the Company is organized along product lines. The Company's segments within the Americas Division are Americas Beverage and North America Food. The Company's segments within the European Division are European Beverage and European Food. The Company's Asia Pacific Division segment consists of its beverage and non-beverage can operations. The Company is also engaged in European aerosol and specialty packaging business, its North American aerosol can business, and its tooling and equipment operations in the Unites States and the United Kingdom. As of December 31, 2016, the Company operated 146 plants along with sales and service facilities throughout 36 countries. It also has three canmaking and spare part operations in the United States and the United Kingdom.

FINANCIAL RATIOS  of  Crown Holdings (CCK)

Valuation Ratios
P/E Ratio 13
Price to Sales 0.8
Price to Book 32.4
Price to Tangible Book
Price to Cash Flow 6.9
Price to Free Cash Flow 14.1
Growth Rates
Sales Growth Rate -5.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 33.6%
Cap. Spend. - 3 Yr. Gr. Rate 11.5%
Financial Strength
Quick Ratio 1
Current Ratio 0
LT Debt to Equity 2659.8%
Total Debt to Equity 2813.6%
Interest Coverage 5
Management Effectiveness
Return On Assets 6.6%
Ret/ On Assets - 3 Yr. Avg. 6.4%
Return On Total Capital 8.7%
Ret/ On T. Cap. - 3 Yr. Avg. 8.1%
Return On Equity 338.6%
Return On Equity - 3 Yr. Avg. 445.6%
Asset Turnover 0.8
Profitability Ratios
Gross Margin 20.5%
Gross Margin - 3 Yr. Avg. 17.3%
EBITDA Margin 14.9%
EBITDA Margin - 3 Yr. Avg. 12.7%
Operating Margin 11.9%
Oper. Margin - 3 Yr. Avg. 9.3%
Pre-Tax Margin 9.3%
Pre-Tax Margin - 3 Yr. Avg. 7.4%
Net Profit Margin 6%
Net Profit Margin - 3 Yr. Avg. 4.9%
Effective Tax Rate 24.2%
Eff/ Tax Rate - 3 Yr. Avg. 20%
Payout Ratio 0%

CCK stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CCK stock intrinsic value calculation we used $8698 million for the last fiscal year's total revenue generated by Crown Holdings. The default revenue input number comes from 0001 income statement of Crown Holdings. 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 CCK stock valuation model: a) initial revenue growth rate of 41% 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 11.4%, whose default value for CCK is calculated based on our internal credit rating of Crown Holdings, 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 Crown Holdings.
    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 CCK stock the variable cost ratio is equal to 86.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $102 million in the base year in the intrinsic value calculation for CCK 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 Crown Holdings.

Corporate tax rate of 27% is the nominal tax rate for Crown Holdings. 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 CCK 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 CCK are equal to 54.3%.

Life of production assets of 26 years is the average useful life of capital assets used in Crown Holdings 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 CCK is equal to -5.4%. 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 - $601 million for Crown Holdings - 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 135.186 million for Crown Holdings 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 Crown Holdings at the current share price and the inputted number of shares is $6.2 billion.

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COMPANY NEWS

▶ 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]
▶ New Strong Sell Stocks for July 25th   [Jul-25-18 07:49AM  Zacks]
▶ Crown: 2Q Earnings Snapshot   [Jul-18-18 05:14PM  Associated Press]
▶ 4 Solid Earnings Yield Stocks for Higher Returns   [Jun-07-18 01:11PM  InvestorPlace]
▶ Fear of Fine Makes Crown a Buy   [07:00AM  Morningstar]
▶ Top Ranked Value Stocks to Buy for May 1st   [May-01-18 09:02AM  Zacks]
▶ Top Ranked Value Stocks to Buy for April 30th   [Apr-30-18 07:00AM  Zacks]
▶ Top Ranked Value Stocks to Buy for April 24th   [Apr-24-18 09:58AM  Zacks]
▶ Crown Holdings, Inc. to Host Earnings Call   [Apr-19-18 07:00AM  ACCESSWIRE]
▶ Crown: 1Q Earnings Snapshot   [Apr-18-18 05:19PM  Associated Press]
▶ Crown Holdings Completes Signode Acquisition   [Apr-03-18 01:44PM  PR Newswire]
▶ EU mergers and takeovers (March 6)   [Mar-06-18 11:33AM  Reuters]
▶ Crown reports 4Q loss   [Feb-07-18 05:55PM  Associated Press]
▶ Crown Holdings Announces Pricing of Senior Notes   [Jan-18-18 02:03PM  PR Newswire]
▶ /C O R R E C T I O N -- Crown Holdings, Inc./   [Jan-16-18 10:01AM  PR Newswire]
▶ Deals of the day-Mergers and acquisitions   [Dec-19-17 04:00PM  Reuters]
▶ Crown meets 3Q profit forecasts   [07:00AM  Associated Press]

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