Expert answer:Question: Write a critical analysis paper where you will provide arguments (at least
three (3)) that either support or refute the team conclusion of the buy/sell
recommendation (See the attached powerpoint and Excel Spreadsheet for Team project) – • The focus of this paper is to provide a clear presentation of your evidence and
arguments, leading to your conclusion. • These arguments can be from analysts report available on the internet or other
source of information.
• Do not replicate arguments already presented in the team projectThe report should be three pages long -Double Space
canadian_pacific_railway.pptx
cp_valuation_toronto_b.xlsx
Unformatted Attachment Preview
COMPANY
VALUATION
1
Forecasted Income Statement And Balance Sheet
INCOME STATEMENT
• We used the historical financials from 2007 to 2016
to calculate the projected income statements from
2017 to 2026.
• The 5-year CAGR sales growth from 2012-2016 was
calculated and adjusted by expected industry
growth, which resulted in an estimated sales growth
rate of 4.82%. This was used in our 10 year
projections.
• Similarly, we used average COGS as a percentage of
revenue from 2012- 2016 to forecast COGS. As well,
we used an average of the last 5 years Depreciation
& Amortization as a percentage of Net PP&E, which
resulted in 3.9% used in our projection.
• An average effective income tax rate from 20122016 (26.1%) was used to forecast income tax.
• Some items that were out of ordinary were not
included in the pro-forma income statement. These
items included restructuring costs, acquisition costs,
etc. and were mostly one time costs, which were not
recurring.
BALANCE SHEET
• For current assets, total receivable was calculated
using an average percentage of revenue for the last 5
years, which resulted in 9.7%.
• Inventory was calculated with the 5-year average
percentage of revenue (2.7%).
• For fixed assets, gross PP&E was calculated using 5year CAGR (4.3%).
• For current liabilities, accounts payables was
calculated using the average percentage of revenue
from 2012 to 2016 (10.3%).
• For long-term debt, we took an average of the last 5
years as well.
• For retained earnings, we added the projected net
income to the R/E balance from the year before.
2
Forecasted Cash Flow Statement
• We calculated cash flow from operating (CFO) by adding back depreciation to net income
with any working capital adjustment.
• Capital expenditure was calculated as the difference in Gross PP&E with a deduction of
the sales of PP&E.
• We projected the sales of PP&E to be the same as its 10-year average.
3
Assumptions for DCF Analysis
• We used the 5-year average of Interest Expense as a % of Total Debt from 2012 to 2016
as CP’s cost of debt.
• The capital structure of CP did not include preferred equity and is comprised of about
78% common equity and 22% debt.
• The CAPM model was used to calculate the cost of equity.
• The risk free rate used was the Government of Canada Bond yields – 10 year as of
November 7, 2017, we assumed a beta of 1.45, as it aligned with the S&P/Composite
Index and a market return of 6%.
• We also assumed the perpetuity growth rate for terminal cash flow as 4.2%, which was
determined by combining the average of yearly inflation rate of Canada with the average
of Nominal GDP growth. However, we reduced the GDP growth by 30% due to potential
threat of substitutes entering the market. These figures were also based on looking at CP
as a mature, stable industry.
• With the assumptions noted above, the WACC for CP was calculated as 7.04%.
4
Discounted Cash Flow (DCF) Analysis
• For the projected period from 2017 to 2026, free cash flow was
calculated by summing up CFO and Capital expenditure and
deducting the after-tax interest expense. We used the terminal
value of CP to account for the non-forecasted years as well.
• The terminal value for CP was estimated at a growing perpetuity
with a terminal growth rate of 4.4% as indicated in the assumption
section above.
• Using this terminal growth estimate resulted in a terminal value of
$67.9 billion.
• In taking our forecasted free cash flow and using our WACC of
7.04%, we obtained an enterprise value of CP at $35.8 billion.
• As of November 12, 2017, CP had about 144.9 million shares
outstanding and based on our valuation using the DCF model, the
share price should be at $247. It was based on a P/E multiple of
27.6x applied to our EPS estimate of $9.0.
5
COMPARABLESRELATIVE VALUATION
STEP 1- SELECT THE COMPARABLE
PEER COMPANIES FOR CANADIAN
PACIFIC RAILWAY
STEP 2- FIND PUBLICLY AVAILABLE
FINANCIAL INFORMATION
STEP 3- ANALYSIS BASED ON KEY
MULTIPLES, AND RATIOS
STEP 4- BENCHMARK THE
COMPARABLE COMPANIES AND
DETERMINE VALUATION
6
Step 1: Selecting Comparable Peers
• Canadian Pacific Railways
owns and operates
transcontinental freight
railway in Canada and
United States.
• Therefore, all the direct
competitors both in Canada
and United States are
selected for relative
valuation purpose.
7
Step 2: Financial Information
• Canadian National Railway (CN) is the closest direct competitor of
CP in Canada and in the US. CN is also the largest rail road
company in Canada with a market cap of $76.6B (2016). The
current EPS is $3.9, while trailing revenue for last year is $10.13B
and the stock is trading at $102.67.
SOURCES OF
DATA (20122016)
• CSX is a Florida based operating company mainly operating in the
east coast of the US with a $55.9B market cap. CSX’s stock has
increased by 70.40% over the past year. It is currently trading at
$62.59.
PRESS RELEASES
ANNUAL FILINGS (10K
REPORTS)
RESEARCH REPORTS
MOODY’S RATING
• Union Pacific is the oldest and largest railway company in North
America. UP has $114.8B in trailing revenue, $5.65 in EPS, and
currently trades at $145.86.
• Norfolk Southern operates on the east cost of the US. The market
valuation is $45.7B. Stock is currently trading at $158.92 with EPS
at $6.96.
8
Step 3: Relative Valuation on Multiples & Ratios
For Canadian Pacific Railway, we will
be looking at the comparable
companies through their Earning
Multiples, Book Value Multiples and
Revenue.
• Market Multiples
➢Price/Earning ratio (PE)
and variants
➢EV/EBITDA
• Book Multiples
➢Price/Book Value (of
equity) PBV
➢Price/ Cash Flow
• Revenues
➢Price/Sales per Share (PS)
9
Step 4: Benchmark Comparable
Based on Relative Valuation, CP stock is
➢MULTIPLES: Overvalued
➢RATIOS: Stable
➢RATINGS: Stable
Overall, Canadian Pacific railway stock is fairly priced
compared to its direct peers in North America. CP over the
years has shown tremendous organic growth with double
its returns in the last 5 years. Moody’s has also upgraded
the outlook to stable from negative due to improving
operating margin, economy, and competitive environment.
It seems like the stock market price is already reflecting the
current trend. Therefore, we believe Canadian Pacific is
fairly priced based on the comparable data.
10
Recommendation
• High barriers to entry and strong pricing power gives CP a strong hold on its current
market share and will enable future growth.
• CP over the years has shown tremendous organic growth with double its returns in
the last 5 years. We expect CP to continue on this trend considering improved
operating margin, growing economy, and strong competitive environment.
• Valuation:
➢Using the free cash flow approach, we obtained an enterprise value for CP of
$35.8 billion and a stock value of $246.60.
➢Stock value using the multiples approach ranged from $162-$263.
• In conclusion, we recommend buying CP at its current price of $222.23, as we feel it is
undervalued given all the factors mentioned above and our valuation of $246.60.
11
Other Analysts: Target Price
BUY
BUY
BUY
Target Price $238
Target Price $245
Target Price $210
12
APPENDIX
13
Step 2: Financial Information
14
CPR COMPARISON WITH
INDUSTRY
15
Step 3: Relative Valuation on Multiples
EARNING MULTIPLES
30.00
25.00
20.00
15.00
10.00
5.00
–
Canadian National
Railway Company
(TSX:CNR)
Norfolk Southern
Corporation
(NYSE:NSC)
CSX Corporation
(NasdaqGS:CSX)
Union Pacific
Corporation
(NYSE:UNP)
Canadian Pacific
Railway Limited
(TSX:CP)
EV/EBITDA
12.55
10.45
10.66
10.73
12.02
P/E
19.69
19.65
25.02
20.07
17.85
BOOK MULTIPLES
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
–
REVENUE MULTIPLES
7.00
6.00
5.00
4.00
3.00
2.00
1.00
Canadian National
Railway Company
(TSX:CNR)
Norfolk Southern
Corporation
(NYSE:NSC)
CSX Corporation
(NasdaqGS:CSX)
Union Pacific
Corporation
(NYSE:UNP)
Canadian Pacific
Railway Limited
(TSX:CP)
P/B
5.08
2.86
4.11
4.80
5.79
P/CFO
13.81
11.42
13.11
12.32
14.53
–
P/S
Canadian National
Railway Company
(TSX:CNR)
Norfolk Southern
Corporation
(NYSE:NSC)
CSX Corporation
(NasdaqGS:CSX)
Union Pacific
Corporation
(NYSE:UNP)
Canadian Pacific
Railway Limited
(TSX:CP)
5.90
3.51
3.86
4.38
4.97
16
Step 3: Relative Valuation on Ratios
Return on Equity
12.00%
30.00%
10.00%
25.00%
8.00%
20.00%
PERCENTAGE
PERCENTAGE
Return on Asset
6.00%
4.00%
2.00%
0.00%
15.00%
10.00%
5.00%
0.00%
Canadian
Pacific
Canadian
National
Norfolk
Southern
CSX
Union Pacific
Canadian
Pacific
Canadian
National
Norfolk
Southern
CSX
Union Pacific
2012
4.35%
8.04%
7.08%
7.55%
8.11%
2012
12.03%
22.37%
18.62%
21.60%
18.12%
2013
5.67%
8.74%
6.63%
7.21%
9.14%
2014
7.31%
8.52%
6.48%
6.95%
9.61%
2013
9.93%
24.70%
17.78%
21.17%
20.51%
2014
14.35%
21.79%
18.15%
18.98%
21.35%
2015
8.69%
9.35%
6.80%
7.04%
2016
8.94%
9.67%
5.47%
6.70%
10.72%
2015
23.23%
23.97%
16.88%
17.78%
24.43%
9.41%
2016
25.99%
24.90%
12.65%
17.23%
22.78%
17
Step 3: Relative Valuation on Ratios
Net Margin
60.00%
30.00%
50.00%
25.00%
40.00%
20.00%
PERCENTAGE
PERCENTAGE
Gross Margin
30.00%
15.00%
20.00%
10.00%
10.00%
5.00%
0.00%
0.00%
Canadian
Pacific
Canadian
National
Norfolk
Southern
CSX
Union Pacific
Canadian
Pacific
Canadian
National
Norfolk
Southern
CSX
Union Pacific
2012
28.14%
49.36%
36.48%
37.69%
41.54%
2013
32.41%
49.87%
36.59%
38.45%
44.41%
2012
11.01%
27.22%
17.15%
15.72%
16.83%
2013
8.50%
27.02%
15.84%
15.84%
18.84%
2014
40.98%
48.68%
37.11%
38.06%
45.86%
2014
14.27%
24.70%
16.99%
15.50%
19.98%
22.30%
26.10%
17.21%
15.21%
21.59%
20.14%
28.05%
14.80%
16.66%
21.88%
2015
45.03%
49.79%
38.94%
37.91%
48.28%
2015
2016
48.97%
54.06%
37.47%
41.00%
50.37%
2016
18
CANADIAN
NATIONAL
RATING-A2
UNION PACFIC
RATING-Aa2
MOODY’S RATING
NORTHFOLK
CSX
RATING-Baa1
RATING-Baa1
CANADIAN
PACIFIC
RATING-Baa1
19
DASHBOARD
Stock Ticker:
Company Name:
Industry/Sector:
Current Stock Price
Market Capitalization
Number of Shares Outstanding
Date :
CP
Canadian Pacific Railway Limited
Services
$
222.23
32,216,060,000.00
144,970,000.00
10/22/2017
INTRINSIC VALUE
246.60
KEY FINANCIALS
Income Statement Assumptions
Details
Revenue CAGR
COGS as % of Revenue
4.82%
55.82%
Depreciation as % of Net PP&E
3.94%
Interest Expense as % of Total Debt
5.32%
Income Tax Rate
Weighted Average Cost Of Capital
Risk-Free Rate
Market Return
Beta
26.08%
Details
1.89%
6.00%
1.45
Cost of Equity
Value of Equity (Millions)
7.85%
322.12
Cost of Debt
Value of Debt (Millions)
3.86%
81.92
WACC
7.04%
Go To:
Income Statement
Balance Sheet
Cash Flow and DCF Valuation
Comparable
Ratio Analysis
GDP
Balance Sheet Assumptions
Total Receivables as % of Revenue
Gross PP&E CAGR
Accounts Payable as % of COGS
Inventory % Revenue
Long-Term Debt (Millions)
Discounted Free Cash Flow Analysis
Sum of PV of FCF (Millions)
Enterprise Value (Millions)
EPS
P/E Multiple
Terminal Value Growth Rate
Intrinsic Value
Details
9.75%
4.31%
10.29%
2.70%
$6,472.00
Details
44,172.79
35,749.79
903.21%
27.30
4.25%
–
$246.60
Go To:
Income Statement
Balance Sheet
Cash Flow and DCF Valuation
Comparable
Ratio Analysis
GDP
Cash Flow Assumptions
Details
Sale of Property, Plant, and Equipment (Millions)
$126.85
Sale (Purchase) of Intangible assets (Millions)
$(69.40)
Common Dividends Paid CAGR
Repurchase of Common Stock (Millions)
Comparable
13.89%
$(2,015.67)
2016
Return on Assets
Return on Equity
8.94%
25.99%
Gross Margin
Net Income Margin
48.97%
20.14%
EV/EBITDA
P/S
P/E
P/B
P/CFO
12.02
4.97
17.85
5.79
14.53
Income Statement
For the Fiscal Period Ending
Currency (Millions)
Revenue
Other Revenue
Total Revenue
Dec-31-2007
CAD
4,555.2
152.4
4,707.6
Dec-31-2008
CAD
4,921.5
127.0
5,048.5
Dec-31-2009
CAD
4,280.0
122.0
4,402.0
Dec-31-2010
CAD
4,853.0
128.0
4,981.0
Dec-31-2011
CAD
5,052.0
125.0
5,177.0
Dec-31-2012
CAD
5,550.0
145.0
5,695.0
Dec-31-2013
CAD
5,982.0
151.0
6,133.0
Dec-31-2014
CAD
6,464.0
156.0
6,620.0
Dec-31-2015
CAD
6,552.0
160.0
6,712.0
Dec-31-2016
CAD
6,060.0
172.0
6,232.0
Cost Of Goods Sold
Gross Profit
3,119.3
1,588.3
3,581.3
1,467.2
3,113.0
1,289.0
3,376.0
1,605.0
3,720.0
1,457.0
3,849.0
1,846.0
3,620.0
2,513.0
3,639.0
2,981.0
3,425.0
3,287.0
2,898.0
3,334.0
427.5
–
428.2
–
483.0
–
489.0
–
490.0
–
539.0
–
565.0
91.0
552.0
94.0
595.0
103.0
640.0
116.0
427.5
428.2
483.0
489.0
490.0
539.0
656.0
646.0
698.0
756.0
1,160.8
1,039.0
806.0
1,116.0
967.0
1,307.0
1,857.0
2,335.0
2,589.0
2,578.0
Interest Expense
Interest and Invest. Income
Net Interest Exp.
(219.6)
15.3
(204.3)
(260.4)
20.8
(239.6)
(286.0)
18.0
(268.0)
(268.0)
11.0
(257.0)
(255.0)
3.0
(252.0)
(279.0)
3.0
(276.0)
(283.0)
5.0
(278.0)
(286.0)
4.0
(282.0)
(395.0)
1.0
(394.0)
(472.0)
1.0
(471.0)
Income/(Loss) from Affiliates
Currency Exchange Gains (Loss)
Other Non-Operating Inc. (Exp.)
EBT Excl. Unusual Items
11.2
169.8
(29.6)
1,107.9
50.9
(11.9)
(11.0)
827.4
5.0
(9.0)
534.0
12.0
(9.0)
862.0
(6.0)
(17.0)
692.0
3.0
(68.0)
966.0
(4.0)
(13.0)
1,562.0
(11.0)
(8.0)
2,034.0
(273.0)
(15.0)
1,907.0
84.0
(14.0)
2,177.0
Restructuring Charges
Impairment of Goodwill
Gain (Loss) On Sale Of Invest.
Gain (Loss) On Sale Of Assets
Asset Writedown
Legal Settlements
Other Unusual Items
EBT Incl. Unusual Items
(21.5)
1,086.4
(49.4)
778.0
90.0
79.0
(72.0)
631.0
9.0
871.0
15.0
(10.0)
697.0
(55.0)
(3.0)
(80.0)
(154.0)
(38.0)
636.0
(2.0)
(435.0)
1,125.0
4.0
2,038.0
68.0
31.0
(47.0)
1,959.0
(25.0)
2,152.0
Income Tax Expense
Earnings from Cont. Ops.
154.3
932.1
150.2
627.8
81.0
550.0
220.0
651.0
127.0
570.0
152.0
484.0
250.0
875.0
562.0
1,476.0
607.0
1,352.0
553.0
1,599.0
Earnings of Discontinued Ops.
Extraord. Item & Account. Change
Net Income to Company
932.1
627.8
550.0
651.0
570.0
484.0
875.0
1,476.0
1,352.0
1,599.0
Selling General & Admin Exp.
R & D Exp.
Depreciation & Amort.
Other Operating Expense/(Income)
Other Operating Exp., Total
Operating Income
Minority Int. in Earnings
Net Income
932.1
627.8
550.0
651.0
570.0
484.0
875.0
1,476.0
1,352.0
1,599.0
67.8%
71.9%
67.6%
59.0%
55.0%
51.0%
46.5%
4.1%
3.8%
4.1%
4.2%
3.8%
3.7%
3.8%
-6.2%
-5.3%
-5.9%
-5.8%
-4.9%
-4.4%
-5.5%
25.3%
18.2%
23.9%
22.2%
27.6%
31.0%
25.7%
Assumptions
Revenue CAGR
COGS as % of Revenue
Depreciation as % of Net PP&E
Interest Expense as % of Total Debt
Income Tax Rate
4.82% CAGR+industry growth 3%
55.8% average of 2012-2016
66.3%
70.9%
70.7%
3.9%
4.8%
3.5%
4.0%
-5.3%
-5.0%
-5.3%
-6.0%
26.1% average of 2012-2016
19.3%
12.8%
14.2%
Industry growth:
https://www.ibisworld.ca/industry/rail-transportation.html
Projected
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
6,532.3
6,847.0
7,177.0
7,522.8
7,885.3
8,265.2
8,663.5
9,081.0
9,518.5
9,977.2
3,646.5
2,885.8
3,822.2
3,024.9
4,006.3
3,170.6
4,199.4
3,323.4
4,401.7
3,483.6
4,613.8
3,651.4
4,836.1
3,827.4
5,069.2
4,011.8
5,313.4
4,205.1
5,569.5
4,407.7
657.4
–
672.0
–
687.7
–
704.7
–
722.8
–
742.3
–
763.0
–
785.1
–
808.5
–
833.4
–
657.4
672.0
687.7
704.7
722.8
742.3
763.0
785.1
808.5
833.4
2,228.4
2,352.9
2,482.9
2,618.8
2,760.7
2,909.1
3,064.4
3,226.7
3,396.5
3,574.3
(457.2)
(457.2)
(457.2)
(457.2)
(457.2)
(457.2)
(457.2)
(457.2)
(457.2)
(457.2)
(457.2)
(457.2)
(457.2)
(457.2)
(457.2)
(457.2)
(457.2)
(457.2)
(457.2)
(457.2)
1,771.3
1,895.7
2,025.8
2,161.6
2,303.6
2,452.0
2,607.2
2,769.5
2,939.4
3,117.1
1,771.3
1,895.7
2,025.8
2,161.6
2,303.6
2,452.0
2,607.2
2,769.5
2,939.4
3,117.1
461.9
1,309.4
494.3
1,401.4
528.2
1,497.5
563.7
1,597.9
600.7
1,702.9
639.4
1,812.6
679.9
1,927.3
722.2
2,047.4
766.5
2,172.9
812.8
2,304.3
1,309.4
1,401.4
1,497.5
1,597.9
1,702.9
1,812.6
1,927.3
2,047.4
2,172.9
2,304.3
1,309.4
1,401.4
1,497.5
1,597.9
1,702.9
1,812.6
1,927.3
2,047.4
2,172.9
2,304.3
Balance Sheet
Balance Sheet as of:
Dec-31-2007
CAD
Dec-31-2008
CAD
Dec-31-2009
CAD
Dec-31-2010
CAD
Dec-31-2011
CAD
Dec-31-2012
CAD
Dec-31-2013
CAD
378.1
378.1
117.6
117.6
679.1
679.1
361.0
361.0
47.0
47.0
333.0
333.0
476.0
476.0
500.2
500.2
432.3
215.1
647.4
285.8
155.2
214.1
655.1
297.0
162.0
459.0
346.0
172.0
518.0
391.0
155.0
546.0
388.0
192.0
580.0
179.5
67.3
42.6
1,167.7
215.8
76.5
65.7
1,123.0
132.7
128.1
46.5
1,641.5
114.0
222.0
48.0
1,204.0
138.0
101.0
52.0
856.0
136.0
254.0
60.0
1,329.0
165.0
344.0
411.0
53.0
2,029.0
Gross Property, Plant & Equipment
Accumulated Depreciation
Net Property, Plant & Equipment
13,784.5
(4,864.8)
8,919.7
17,754.2
(5,369.6)
12,384.6
17,361.9
(5,383.4)
11,978.5
17,620.0
(5,623.0)
11,997.0
18,722.0
(5,970.0)
12,752.0
19,281.0
(6,268.0)
13,013.0
19,511.0
(6,184.0)
13,327.0
Long-term Investments
Goodwill
Other Intangibles
Deferred Charges, LT
Other Long0Term Assets
Total Assets
1,668.6
373.4
1,235.6
13,365.0
151.1
179.6
57.6
1,261.4
15,157.3
156.7
154.9
47.4
47.4
128.4
14,154.8
145.0
147.0
43.0
50.0
90.0
13,676.0
167.0
150.0
42.0
47.0
96.0
14,110.0
83.0
146.0
15.0
45.0
96.0
14,727.0
92.0
150.0
12.0
7.0
1,406.0
17,023.0
LIABILITIES
Accounts Payable
Accrued Exp.
Short-term Borrowings
Curr. Port. of LT Debt
Curr. Port. of Cap. Leases
Curr. Income Taxes Payable
Other Current Liabilities
Total Current Liabilities
920.4
58.3
229.7
31.0
68.8
36.6
1,344.8
754.2
39.4
150.1
44.0
42.2
279.4
1,309.3
249.3
546.3
605.3
31.9
173.2
1,606.0
226.0
606.0
282.0
31.0
145.0
1,290.0
387.0
535.0
27.0
50.0
39.0
172.0
1,210.0
321.0
602.0
54.0
36.0
217.0
1,230.0
358.0
590.0
189.0
46.0
195.0
1,378.0
Long-Term Debt
Capital Leases
Unearned Revenue, Non0Current
Pension & Other Post0Retire. Benefits
Def. Tax Liability, Non0Curr.
4,146.2
278.8
1,701.5
4,685.8
111.1
226.9
2,527.6
4,138.2
122.9
1,453.9
1,818.7
4,033.0
107.0
1,116.0
1,945.0
4,695.0
72.0
1,372.0
1,819.0
4,636.0
67.0
1,382.0
2,092.0
4,650.0
62.0
673.0
2,903.0
Currency (Millions)
ASSETS
Cash And Equivalents
Total Cash & ST Investments
Accounts Receivable
Other Receivables
Notes Receivable
Total Receivables
Inventory
Deferred Tax Assets, Curr.
Restricted Cash
Other Current Assets
Total Current Assets
Other Non0Current Liabilities
Total Liabilities
435.8
7,907.1
527.2
9,387.9
357.0
9,496.7
361.0
8,852.0
293.0
9,461.0
223.0
9,630.0
260.0
9,926.0
Common Stock
Additional Paid In Capital
Retained Earnings
Treasury Stock
Comprehensive Inc. and Other
Total Common Equity
1,188.6
42.4
4,187.3
39.6
5,457.9
1,220.8
40.2
4,430.7
77.7
5,769.4
1,771.1
30.8
4,600.9
(1,744.7)
4,658.1
1,813.0
24.0
5,073.0
(2,086.0)
4,824.0
1,854.0
86.0
5,445.0
(2,736.0)
4,649.0
2,127.0
41.0
5,697.0
(2,768.0)
5,097.0
2,240.0
34.0
6,326.0
(1,503.0)
7,097.0
Total Equity
5,457.9
5,769.4
4,658.1
4,824.0
4,649.0
5,097.0
7,097.0
13,365.0
15,157.3
14,154.8
13,676.0
14,110.0
14,727.0
17,023.0
14.88%
9.22%
10.01%
9.59%
9.46%
8.01%
6.69%
10.40%
8.34%
9.89%
3.01%
2.29%
2.67%
2.39%
2.69%
Total Liabilities And Equity
Difference
Assumptions
Total Receivables as % of Revenue
Gross PP&E CAGR
Accounts Payable as % of COGS
Inventory % Revenue
Long-Term Debt
9.7% average of 2012-2016
10.63%
12.82%
4.3%
10.3% average of 2012-2016
29.51%
21.06%
2.7%
3.81%
4.27%
6,472.0
Projected
Dec-31-2014
CAD
Dec-31-2015
CAD
Dec-31-2016
CAD
2017
2018
2019
2020
2021
2022
2023
2024
2025
226.0
226.0
650.0
650.0
164.0
164.0
1,088.6
1,088.6
2,069.4
2,069.4
3,114.8
3,114.8
4,228.2
4,228.2
5,413.4
5,413.4
6,674.1
6,674.1
8,014.3
8,014.3
9,438.2
9,438.2
10,950.2
10,950.2
513.0
189.0
702.0
460.0
185.0
645.0
429.0
162.0
591.0
636.8
667.5
699.6
733 …
Purchase answer to see full
attachment
