Dreamworks Animation SKG (Dreamworks Animation SKG) Intrinsic Value: DCF (Dividends Based) : $ (As of May. 05, 2024)

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What is Dreamworks Animation SKG Intrinsic Value: DCF (Dividends Based)?

As of today (2024-05-05), Dreamworks Animation SKG's intrinsic value calculated from the Discounted Dividend model is $.

Note: Discounted Dividend model is only suitable for companies who have a consistant distribution history. If the company's dividends does not remain steady over a long period, results may not be accurate due to the low consistency. The model is also only suitable for predictable companies (Business Predictability Rank higher than 1-Star) with dividend payments. If the company's Predictability Rank is 1-Star or Not Rated, or if the company does not pay dividend, the data will not be stored into our database.

Dreamworks Animation SKG's Predictability Rank is Not Rated. Thus, this page is only used for demonstration purposes and the DCF related results in the screener and portfolio will appear as zero.

Margin of Safety % (DCF Dividends Based) using Discounted Dividend Model for Dreamworks Animation SKG is

The historical rank and industry rank for Dreamworks Animation SKG's Intrinsic Value: DCF (Dividends Based) or its related term are showing as below:

DWA's Price-to-DCF (Dividends Based) is not ranked ^*
in the Media - Diversified industry.
Industry Median: 0.76
* Ranked among companies with meaningful Price-to-DCF (Dividends Based) only.

Dreamworks Animation SKG Intrinsic Value: DCF (Dividends Based) Historical Data

The historical data trend for Dreamworks Animation SKG's Intrinsic Value: DCF (Dividends Based) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Dreamworks Animation SKG Intrinsic Value: DCF (Dividends Based) Chart

Dreamworks Animation SKG Annual Data

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Intrinsic Value: DCF (Dividends Based)

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Dreamworks Animation SKG Quarterly Data
	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16
Intrinsic Value: DCF (Dividends Based)	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of Dreamworks Animation SKG's Intrinsic Value: DCF (Dividends Based)

For the Broadcasting subindustry, Dreamworks Animation SKG's Price-to-DCF (Dividends Based), along with its competitors' market caps and Price-to-DCF (Dividends Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Dreamworks Animation SKG's Price-to-DCF (Dividends Based) Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Dreamworks Animation SKG's Price-to-DCF (Dividends Based) distribution charts can be found below:

* The bar in red indicates where Dreamworks Animation SKG's Price-to-DCF (Dividends Based) falls into.

Dreamworks Animation SKG Intrinsic Value: DCF (Dividends Based) Calculation

This is the intrinsic value calculated from the Discounted Dividend Model with default parameters. The calculation method is the same as Discounted Cash Flow model except adjusted dividend are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DDM calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.50%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Dividend Growth Rate in the growth stage: g1 = %
The Growth Rate in the growth stage is initially set as the default 10-Year Dividend Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year Dividend Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year Dividend Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=>

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Dividends per Share: adjusted dividends per share = $.
GuruFocus uses adjusted dividends per share by default to ensure that the valuation reflects the total value of the company, as the actual dividend is only a portion of the total value.

All of the default settings can be changed in the DCF calculator and the results are calculated automatically.

Dreamworks Animation SKG's Intrinsic Value: DCF (Dividends Based) for today is calculated as:

Intrinsic Value: DCF (Dividends Based)	=	Dividends per Share	*	{[(1+g1)/(1+d)	+	(1+g1)^2/(1+d)^2	+	...	+	(1+g1)^10/(1+d)^10]
	+	(1+g1)^10/(1+d)^10	*	[(1+g2)/(1+d)	+	(1+g2)^2/(1+d)^2	+	...	+	(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+)/(1+0.11) =
and y = (1+g2)/(1+d) = (1+)/(1+0.11) =

Intrinsic Value: DCF (Dividends Based)

Dividends per Share

{[x

x^2

...

x^10]

x^10

y^2

...

y^10]}

Dividends per Share

(1-x^10)

(1-x)

x^10

(1-y^10)

(1-y)]

Margin of Safety % (DCF Dividends Based)	=	(Intrinsic Value: DCF (Dividends Based)	-	Current Price)	/	Intrinsic Value: DCF (Dividends Based)
	=	(	-	40.97)	/

Dreamworks Animation SKG (NAS:DWA) Intrinsic Value: DCF (Dividends Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Dividends model evaluates the companies based on their power of future dividend distribution instead of their assets.

Be Aware

What you need to know about Discounted Dividends model:

1. The Discounted Dividends model evaluates a company based on its future dividends distribution power
2. Dividend growth is taken into account; therefore a company with a higher dividend growth rate is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies with consistently steady dividends distributed.
4. The Discounted Dividends model works poorly for inconsistent dividends distributor like high growth companies.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less dividends distributed.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) and Intrinsic Value: DCF (Dividends Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.

Dreamworks Animation SKG Intrinsic Value: DCF (Dividends Based) Related Terms

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Dreamworks Animation SKG (Dreamworks Animation SKG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Dreamworks Animation SKG Inc (NAS:DWA) » Definitions » Intrinsic Value: DCF (Dividends Based)

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.dreamworksanimation.com

Dreamworks Animation SKG Inc is a Delaware Corporation incorporated on October 28, 2004. The Company creates and exploits family entertainment, including animated feature films, television series and specials, live entertainment properties and related consumer products. The Company operates through the following segments: Feature Films which consists of the development, production and exploitation of feature films in the theatrical, television, home entertainment and digital markets; Television Series and Specials which consists of the development, production and exploitation of television, direct-to-video and other non-theatrical content in the television, home entertainment and digital markets; Consumer Products which consists of merchandising and licensing activities related to the exploitation of its intellectual property rights; and All Other which consists of all other segments, primarily ATV and live performances. It has released a total of 27 animated feature films, including the franchise properties Shrek, Madagascar, Kung Fu Panda and How to Train Your Dragon. In addition to the creation of feature films, it is engaged in a number of initiatives to more fully exploit its franchise and other properties. One of these initiatives is the development and production of episodic series. The Company has recently entered into long-term agreements with Netflix and certain foreign television broadcasters to deliver existing and future series over the next several years. It conducts its business in two studios: in Glendale, California and in Redwood City, California. It is currently producing six animated feature films for release in 2014 and 2015. Its films and other projects compete on a broad level with all forms of entertainment and other consumer leisure activities. Its competition for film audiences generally comes from other wide-release "event" films released into the theatrical market at or near the same time as its films.

Executives

Lucian Grainge	director	C/O ACTIVISION BLIZZARD, INC., 3100 OCEAN PARK BLVD, SANTA MONICA CA 90405
Fazal F Merchant	officer: Chief Financial Officer	2230 E. IMPERIAL HIGHWAY, EL SEGUNDO CA 90245
Steven A Adams	officer: Chief Accounting Officer	2260 E IMPERIAL HIGHWAY, EL SEGUNDO X1 90245
Jeffrey Katzenberg	director, 10 percent owner, officer: Chief Executive Officer	C/O DREAMWORKS ANIMATION SKG, INC. 1000 FLOWER STREET GLENDALE CA 91201
Michael J Montgomery	director	100 WILSHIRE BOULEVARD SUITE 400 SANTA MONICA CA 90401
Thomas E Freston	director	VIACOM INC., 1515 BROADWAY, NEW YORK NY 10036
Jason Kilar	director	208 S. AKARD ST, DALLAS TX 75202
Mary Agnes Wilderotter	director	115 ALPINE TERRACE, OAKLAND CA 94618
Mellody L Hobson	director	C/O TELLABS, 1415 W DIEHL RD, NAPERVILLE IL 60563
Michael Francis	officer: Chief Global Brand Officer	6501 LEGACY DRIVE, PLANO TX 75024
Lewis W Coleman	director, officer: Vice Chairman
Mark Zoradi	officer: Chief Operating Officer	C/O DREAMWORKS ANIMATION SKG, INC., 1000 FLOWER STREET, GLENDALE CA 91201
Roger A Enrico	director
Judson C Green	director	C/O NAVTEQ CORPORATION, 222 MERCHANDISE MART #900, CHICAGO IL 60554
Von Der Heyden Karl M	director	25 CENTRAL PARK WEST, #24K, NEW YORK NY 10023