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Magic Software Enterprises (Magic Software Enterprises) Intrinsic Value: Projected FCF : $17.67 (As of Apr. 30, 2024)


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What is Magic Software Enterprises 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 (2024-04-30), Magic Software Enterprises's Intrinsic Value: Projected FCF is $17.67. The stock price of Magic Software Enterprises is $11.81. Therefore, Magic Software Enterprises's Price-to-Intrinsic-Value-Projected-FCF of today is 0.7.

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

MGIC' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.66   Med: 1.28   Max: 1.82
Current: 0.67

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Magic Software Enterprises was 1.82. The lowest was 0.66. And the median was 1.28.

MGIC's Price-to-Projected-FCF is not ranked
in the Software industry.
Industry Median: 1.625 vs MGIC: 0.67

Magic Software Enterprises Intrinsic Value: Projected FCF Historical Data

The historical data trend for Magic Software Enterprises'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.

Magic Software Enterprises Intrinsic Value: Projected FCF Chart

Magic Software Enterprises 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 9.91 13.31 16.04 16.05 18.32

Magic Software Enterprises 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 16.05 16.72 16.70 16.65 18.32

Competitive Comparison of Magic Software Enterprises's Intrinsic Value: Projected FCF

For the Information Technology Services subindustry, Magic Software Enterprises'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.


Magic Software Enterprises's Price-to-Projected-FCF Distribution in the Software Industry

For the Software industry and Technology sector, Magic Software Enterprises's Price-to-Projected-FCF distribution charts can be found below:

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



Magic Software Enterprises 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 Magic Software Enterprises's Free Cash Flow(6 year avg) = $44.01.

Magic Software Enterprises'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)
=(14.862653310476*44.00864+265.981*0.8)/49.099
=17.66

* 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.


Magic Software Enterprises  (NAS:MGIC) 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.

Magic Software Enterprises's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=11.81/17.655552230912
=0.67

* 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.


Magic Software Enterprises Intrinsic Value: Projected FCF Related Terms

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Magic Software Enterprises (Magic Software Enterprises) Business Description

Traded in Other Exchanges
Address
Yahadut Canada 1 Street, Or Yehuda, Or Yehuda, ISR, 6037501
Magic Software Enterprises Ltd is a software development company. The company's operating segment includes Software Services and IT Professional Services. It generates maximum revenue from the IT Professional Services segment. IT Professional Services segment offers advanced and flexible IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, as well as supplemental outsourcing services. Geographically, it derives a majority of revenue from the United States and also has a presence in Israel; Europe; Japan, and Other countries.

Magic Software Enterprises (Magic Software Enterprises) Headlines