Corby Spirit and Wine (CSW.B:TSE) Fundamental Valuation Report

Fundamental Valuation Report

Corby Spirit and Wine(CSW.B:TSE)

Consumer Defensive:Beverages-Wineries & Distilleries

This Report was generated using the valuation tools available on For a free 30 day trial click here.

Close Price/Date
$18.45 (CAD) 07/11/2018

Weighted Valuation
$19.26 (CAD)

Overall Rating
Fairly valued to slightly Undervalued by 4.4%

Valuation Models Analyst Consensus: $22.75 (CAD)
(in order of importance) Discounted Cash Flow: $14.97 (CAD)
Comparables: $17.35 (CAD)
Valuation Methods This company is:
Cash Flow: Overvalued on a Cash Flow Valuation
Comparable Company: Overvalued on a Comparable Valuation
Asset: Undervalued on an Asset Valuation

Company Overview (CSW.B:TSE CAD)

Price 0.00
Range 0.00 – 0.00
52 week 0.00 – 0.00
Open 0.00
Vol / Avg. 0/0
Mkt cap 0
P/E 0.00
Div/yield 0.00/0.00
EPS 0.00
Shares 0
Beta 0.00

Company Description

Corby Spirit and Wine Ltd is a Canadian marketer and distributor of spirits and imported wines. Its portfolio includes some of the most renowned brands in Canada, including J.P. Wiser’s Canadian whiskies, Lamb’s rum, Polar Ice vodka and McGuinness liqueurs. The company has two reportable segments: Case Goods segment and Commissions segment. Corby’s Case Goods segment derives its revenue from the production and distribution of its owned beverage alcohol brands. Its Commissions segment earns commission income from the representation of non-owned beverage alcohol brands in Canada. In addition to sales across Canada, Corby products are also exported for sale to the United States, Europe, and other international markets.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for CSW.B:TSE

Using a discounted cash flow model we generated an intrinsic value of $14.97 (CAD) for CSW.B:TSE

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

CSW.B:TSE Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $14.97 1% 5% 1% 5%
WACC (or Ke) 8.96 $18.00 $12.81
Terminal Growth Rate 3.00 $13.03 $17.69
Tax Rate 0.27 $16.11 $13.83
Cash Flow 44,517,923 $14.10 $15.84
Capital Expenditures -3,043,400 $14.91 $15.03
Long Term Debt 0 $14.97 $14.97

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $17.35 (CAD) for CSW.B:TSE. We also generated a valuation of $17.17 (CAD) using other metrics and comparables.
The comparable companies were and Andrew Peller (ADW.B:TSE).

Company CSW.B:TSE End Date Value
Earnings/Share $0.90 (CAD)
Book Value/Share $6.49 (CAD)
Sales/Share $5.15 (CAD)
Cash Flow/Share $1.10 (CAD)
EBITDA/Share $1.49 (CAD)
Price Based on Comps Adjustment Factor (%)
$19.57 (CAD) -0.3
$18.79 (CAD) -31.5
$9.12 (CAD) 28.0
$24.48 (CAD) -5.4
$20.51 (CAD) -4.6
CSW.B:TSE Ratios Used Average Values ADW.B:TSE
20.22 PE Ratio 21.74 21.74
2.81 PB Ratio 2.90 2.90
3.53 PS Ratio 1.77 1.77
16.55 PCF Ratio 22.26 22.26
12.83 EV to EBITDA 13.76 13.76


Using a multiples approach we generated a valuation of  $20.57 (CAD) for CSW.B:TSE

Company CSW.B:TSE End Date Value
Earnings/Share $0.90 (CAD)
Book Value/Share $6.49 (CAD)
Sales/Share $5.15 (CAD)
Cash Flow/Share $1.10 (CAD)
EBITDA/Share $1.49 (CAD)
Price Based on Comps Adjustment Factor
$20.57 (CAD) 0
$20.31 (CAD) 0
$20.94 (CAD) 0
$20.20 (CAD) 0
$20.83 (CAD) 0
Ratios Ratio Average
PE Ratio 22.85
PB Ratio 3.13
PS Ratio 4.07
PCF Ratio 18.36
EV to EBITDA 13.97

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  CSW.B:TSE for the last 10 years was  3.09

We ran the Adjusted Book Value for  CSW.B:TSE and generated a book value of  $6.49 (CAD)
By multiplying these we get an adjusted valuation of  $20.08 (CAD)

Analyst Data

In the Stockcalc database there are 1 analysts that provide a valuation for CSW.B:TSE. The 1 analysts have a concensus valuation for CSW.B:TSE for 2019 of $22.75 (CAD).

CSW.B:TSE Corby Spirit and Wine

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
0 1 0 3.0000 Hold 2018-11-6

Current Price: 18.45 CAD

Analyst Consensus
CAD Millions 2019 2020
Mean EPS 0.90 0.93
# EPS Analysts 1 1
Mean Revenue 145.10 143.20
# Revenue Analysts 1 1
Mean Target Price 22.75
Mean Cash Flow
Mean Net Income
Mean Debt Outstanding
Mean Tax Rate
Mean Growth Rate
Mean Capital Expenditure

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User

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