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Arrow Financial (Arrow Financial) Intrinsic Value: Projected FCF : $41.91 (As of May. 02, 2024)


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What is Arrow Financial Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-05-02), Arrow Financial's Intrinsic Value: Projected FCF is $41.91. The stock price of Arrow Financial is $23.27. Therefore, Arrow Financial's Price-to-Intrinsic-Value-Projected-FCF of today is 0.6.

The historical rank and industry rank for Arrow Financial's Intrinsic Value: Projected FCF or its related term are showing as below:

AROW' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.53   Med: 0.84   Max: 1.19
Current: 0.56

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Arrow Financial was 1.19. The lowest was 0.53. And the median was 0.84.

AROW's Price-to-Projected-FCF is ranked worse than
63.29% of 1215 companies
in the Banks industry
Industry Median: 0.43 vs AROW: 0.56

Arrow Financial Intrinsic Value: Projected FCF Historical Data

The historical data trend for Arrow Financial's Intrinsic Value: Projected FCF 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.

Arrow Financial Intrinsic Value: Projected FCF Chart

Arrow Financial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 35.47 34.11 44.65 45.15 41.91

Arrow Financial Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 45.15 45.44 44.46 43.82 41.91

Competitive Comparison of Arrow Financial's Intrinsic Value: Projected FCF

For the Banks - Regional subindustry, Arrow Financial's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF 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.


Arrow Financial's Price-to-Projected-FCF Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Arrow Financial's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Arrow Financial's Price-to-Projected-FCF falls into.



Arrow Financial Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Arrow Financial's Free Cash Flow(6 year avg) = $38.47.

Arrow Financial's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Dec23)*0.8)/Shares Outstanding (Diluted Average)
=(10.623553629896*38.46512+379.772*0.8)/17.001
=41.91

* 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.


Arrow Financial  (NAS:AROW) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Arrow Financial's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=23.27/41.906585800858
=0.56

* 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.


Arrow Financial Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of Arrow Financial's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Arrow Financial (Arrow Financial) Business Description

Traded in Other Exchanges
Address
250 Glen Street, Glens Falls, NY, USA, 12801
Arrow Financial Corp is a holding company. The company provides various advisory and administrative services and coordinates the general policies and operations of the banks. It provides financial products, including online and mobile banking, mortgages, commercial loans, investments, and others. The company also provides lending services including commercial and industrial lending primarily to small and mid-sized companies; mortgage lending for residential and commercial properties; and consumer installment and home equity financing. The key source of company's revenue is interest income, fees, commission earned through its subsidiaries.
Executives
Andrew J Wise officer: SVP, Chief Operating Officer 250 GLEN STREET, GLENS FALLS NY 12801
David D Kaiser officer: SVP AMETHYST DRIVE, QUEENSBURY NY 12804
Read Colin L director 81 BLAIR ROAD, PLATTSBURGH NY 12901
William L Owens director 42 BLUE HERRON WAY, PLATTSBURGH NY 12901
Elizabeth Miller director 250 GLEN STREET, GLENS FALLS NY 12801
Gary C Dake director 514 LOCUST GROVE ROAD, GREENFIELD CENTER NY 12833
Mark Behan director 250 GLEN STREET, GLENS FALLS NY 12801
Penko Krassimir Ivanov officer: EVP, Treasurer and CFO C/O ARROW FINANCIAL CORPORATION, 250 GLEN STREET, GLENS FALLS NY 12801
David S. Demarco officer: Senior Vice President 7 INGERSOL ROAD, SARATOGA SPRINGS NY 12866
Raymond F O'conor officer: Senior Vice President 7 ROLLING GREEN DRIVE, WILTON NY 12831
Gregory J Champion director 250 GLEN STREET, GLENS FALLS NY 12801
Thomas L Hoy director ARROW FINANCIAL CORPORATION, 250 GLEN STREET, GLENS FALLS NY 12801
Reisman Richard J Dmd director 9 ST. ANDREWS DRIVE, QUEENSBURY NY 12804
Edward J Campanella officer: SVP, Treasurer & CFO 42 MAXWELL ROAD, LATHAM NY 12110
Michael B Clarke director 58 CHRISTIANA COURT, LAKE GEORGE NY 12845

Arrow Financial (Arrow Financial) Headlines

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