A Valuation of the Royal Canadian Mint

Valuation of Crown Corporations, Crown Corporations, Ian Madsen

The Royal Canadian Mint, or ‘RCM’, is the federal Crown corporation which produces the coin currency, one and two dollar and smaller coins, used in circulation for consumer financial transactions in Canada. Using an intrinsic value method, and discounting to the present RCM’s projected future free cash flows, as the company is today, taxed as it presently is at full statutory rates, the range of estimates is $490M to $3.43B, with a tighter range of a median (midpoint of the array of values) of $857M to a mean (simple average) of $1.1B.

Under the market-based valuation system, i.e., evaluating RCM’s financial metrics against those of companies deemed to be comparable, the ‘as is’ current value of the company ranges from $197M to $9.09B, with a median (midpoint of the array of values) of $1.24B and a mean (simple average) of $3.47B. Five of eight possible valuation metrics (Trailing and Forward Price to Earnings, ‘P/E’; Price to Sales, ‘P/S’; Price to Book Value, ‘P/BV’; and Price to Operating Cash Flow, ‘P/CF’) were usable.

View the entire Valuation here: VS23_RCMint-Valuation_MR1919_F1