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Spire Healthcare Group (LSE:SPI) Intrinsic Value: Projected FCF : £3.85 (As of May. 26, 2024)


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What is Spire Healthcare Group 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 (2024-05-26), Spire Healthcare Group's Intrinsic Value: Projected FCF is £3.85. The stock price of Spire Healthcare Group is £2.55. Therefore, Spire Healthcare Group's Price-to-Intrinsic-Value-Projected-FCF of today is 0.7.

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

LSE:SPI' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.31   Med: 0.63   Max: 0.81
Current: 0.66

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Spire Healthcare Group was 0.81. The lowest was 0.31. And the median was 0.63.

LSE:SPI's Price-to-Projected-FCF is ranked better than
74.04% of 312 companies
in the Healthcare Providers & Services industry
Industry Median: 1.295 vs LSE:SPI: 0.66

Spire Healthcare Group Intrinsic Value: Projected FCF Historical Data

The historical data trend for Spire Healthcare Group'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.

Spire Healthcare Group Intrinsic Value: Projected FCF Chart

Spire Healthcare Group 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 3.26 3.07 3.31 3.42 3.85

Spire Healthcare Group Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 3.31 - 3.42 - 3.85

Competitive Comparison of Spire Healthcare Group's Intrinsic Value: Projected FCF

For the Medical Care Facilities subindustry, Spire Healthcare Group'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.


Spire Healthcare Group's Price-to-Projected-FCF Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Spire Healthcare Group's Price-to-Projected-FCF distribution charts can be found below:

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



Spire Healthcare Group 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 Spire Healthcare Group's Free Cash Flow(6 year avg) = £101.40.

Spire Healthcare Group'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)
=(9.8522006035458*101.4+739.9*0.8)/413.144
=3.85

* 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.


Spire Healthcare Group  (LSE:SPI) 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.

Spire Healthcare Group's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=2.55/3.8507957060965
=0.66

* 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.


Spire Healthcare Group Intrinsic Value: Projected FCF Related Terms

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Spire Healthcare Group (LSE:SPI) Business Description

Traded in Other Exchanges
Address
3 Dorset Rise, London, GBR, EC4Y 8EN
Spire Healthcare Group PLC is an independent hospital group in the United Kingdom, with 40 private hospitals and eight clinics. It is a private provider, by volume, of knee and hip operations in the United Kingdom. The Group is a well-located and scalable hospital have delivered successful and award-winning clinical outcomes, positioning the Group well with patients, Consultants, the NHS, GPs and Private Medical Insurance providers. It treats patients through a variety of routes including PMI, Self-pay and the NHS, providing the Group with diversified access to the expected growth opportunities in the UK healthcare market, which faces significant supply challenges as a result of NHS budget constraints and increasing demand from a growing population with longer life expectancy.