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Avantor (Avantor) Intrinsic Value: Projected FCF : $14.57 (As of May. 16, 2024)


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What is Avantor 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 (2024-05-16), Avantor's Intrinsic Value: Projected FCF is $14.57. The stock price of Avantor is $25.21. Therefore, Avantor's Price-to-Intrinsic-Value-Projected-FCF of today is 1.7.

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

AVTR' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.54   Med: 1.6   Max: 1.75
Current: 1.73

During the past 8 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Avantor was 1.75. The lowest was 1.54. And the median was 1.60.

AVTR's Price-to-Projected-FCF is ranked worse than
61.8% of 1076 companies
in the Chemicals industry
Industry Median: 1.26 vs AVTR: 1.73

Avantor Intrinsic Value: Projected FCF Historical Data

The historical data trend for Avantor'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.

Avantor Intrinsic Value: Projected FCF Chart

Avantor Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial - - - - 14.28

Avantor Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 - - 13.67 14.28 14.57

Competitive Comparison of Avantor's Intrinsic Value: Projected FCF

For the Specialty Chemicals subindustry, Avantor'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.


Avantor's Price-to-Projected-FCF Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Avantor's Price-to-Projected-FCF distribution charts can be found below:

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



Avantor 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 Avantor's Free Cash Flow(6 year avg) = $594.66.

Avantor'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 (Mar24)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*594.656+5336.3*0.8)/681.400
=14.57

* 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.


Avantor  (NYSE:AVTR) 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.

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

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=25.21/14.573487230188
=1.73

* 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.


Avantor Intrinsic Value: Projected FCF Related Terms

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


Avantor (Avantor) Business Description

Industry
Traded in Other Exchanges
Address
100 Matsonford Road, Suite 200, Building One, Radnor Corporate Center, Radnor, PA, USA, 19087
Avantor Inc is involved in providing products and services to biopharma, healthcare, education and government, and advanced technologies and applied materials industries. The company's offerings include materials and consumables, equipment and instrumentation and services and specialty procurement. Its brand profile consists of NuSil, RANKEM, POCH, BeneSphera, and Macron Fine Chemicals among others. The firm operates in three geographical segments namely Americas, Europe, and AMEA. It generates a majority of its revenue from the Americas.
Executives
Benoit Gourdier officer: EVP, Biopharma Production 100 MATSONFORD ROAD, RADNOR PA 19087
Steven W Eck officer: SVP & Chief Accounting Officer C/O CSS INDUSTRIES, INC., 450 PLYMOUTH ROAD, SUITE 300, PLYMOUTH MEETING PA 19462
Frederic Vanderhaegen officer: EVP, Europe C/O AVANTOR, INC., 100 MATSONFORD ROAD, RADNOR PA 19087
Brittany Hankamer officer: EVP, Chief HR Officer 100 MATSONFORD ROAD, RADNOR PA 19087
R. Brent Jones officer: EVP, Chief Financial Officer C/O PALL CORPORATION, 25 HARBOR PARK DRIVE, PORT WASHINGTON NY 11050
Claudius Sokenu officer: EVP, Chief Legal & Compliance C/O UNISYS CORPORATION, 801 LAKEVIEW DRIVE, BLUE BELL PA 19422
Randy Lee Stone officer: EVP, Proprietary Products 974 CENTRE ROAD, CRP 730, WILMINGTON DE 19805
Christophe Couturier officer: See Remarks 9 FOURTH AVENUE, C/O OVASCIENCE INC., CAMBRIDGE MA 02451
Gerard Brophy officer: EVP, Biopharma Production C/O AVANTOR, INC., 100 MATSONFORD ROAD, RADNOR PA 19087
Kitty Sahin officer: EVP, Strategy&Corp Development 100 MATSONFORD ROAD, RADNOR PA 19087
Thomas A Szlosek officer: EVP and CFO HONEYWELL INTERNATIONAL INC., 115 TABOR ROAD, MORRIS PLAINS NJ 07950
Michael Stubblefield director, officer: President and CEO C/O AVANTOR, INC., 100 MATSONFORD ROAD, RADNOR PA 19087
Rajiv Gupta director 234 RAVENCLIFF DRIVE, ST DAVIDS PA 19087
Joseph R Massaro director 5725 DELPHI DRIVE, TROY MI 48098
Mala Murthy director C/O TELADOC HEALTH, INC., 2 MANHATTANVILLE ROAD, SUITE 203, PURCHASE NY 10577