Booze, Cannabis, and Beyond – A Valuation of BC Liquor Distribution Branch

Using an intrinsic value method, and discounting to the present, British Columbia Liquor Distribution Branch’s (BCLDB) projected future free cash flows, as the company is today, but taxed at statutory […]

Using an intrinsic value method, and discounting to the present, British Columbia Liquor Distribution Branch’s (BCLDB) projected future free cash flows, as the company is today, but taxed at statutory rates, the range of estimates is $12.13B to $84.91B, with a tighter range of a median (mid-point of the array of estimated values) of $21.23 to a mean (simple average of the array of estimated values) of $27.32B. Making allowances of bad debt of as much as 5 percent of outstanding loans, that is, by $1.55B, does not lower the estimated value of the company appreciably. Discounting for a bad-but-not-Great Depression-level of bad debt experience of 5 percent of the total loan portfolio, the range becomes a median of $20.20B to a mean of $25.99B. This version used adjustments to the free cash flow calculation which may not be fully reliable.

View the entire Valuation here: VS17_BCLiquor_JA1419_F1

Featured News

MORE NEWS

Don’t Be Fooled by High-Speed Rail

Don’t Be Fooled by High-Speed Rail

The Canadian government is considering spending $6 billion to $12 billion to introduce what it calls “high-frequency trains” between Toronto and Quebec City. Though some media reports have described these as high-speed trains (which generally means trains capable of...

Building a 21st Century Transit System for Calgary

Building a 21st Century Transit System for Calgary

Calgary Transit is mired in the past, building an obsolete transit system designed for an archaic view of a city. Before the pandemic, transit carried 45 percent of downtown Calgary employees to work, but less than 10 percent of workers in the rest of the Calgary...