Carriage Services (Carriage Services) Intrinsic Value: DCF (Dividends Based) : $60.89 (As of Apr. 27, 2024)

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What is Carriage Services Intrinsic Value: DCF (Dividends Based)?

As of today (2024-04-27), Carriage Services's intrinsic value calculated from the Discounted Dividend model is $60.89.

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.

Carriage Services's Predictability Rank is 4-Stars.

Margin of Safety % (DCF Dividends Based) using Discounted Dividend Model for Carriage Services is 59.07%.

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

CSV' s Price-to-DCF (Dividends Based) Range Over the Past 10 Years
Min: 0.36 Med: 0.63 Max: 1.63
Current: 0.41

During the past 13 years, the highest Price-to-Intrinsic-Value-DCF (Dividends Based) Ratio of Carriage Services was 1.63. The lowest was 0.36. And the median was 0.63.

CSV's Price-to-DCF (Dividends Based) is ranked better than
78.57% of 14 companies
in the Personal Services industry
Industry Median: 0.84 vs CSV: 0.41

Carriage Services Intrinsic Value: DCF (Dividends Based) Historical Data

The historical data trend for Carriage Services'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.

Carriage Services Intrinsic Value: DCF (Dividends Based) Chart

Carriage Services Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Intrinsic Value: DCF (Dividends Based)

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41.78

73.21

98.79

77.04

67.02

Carriage Services Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Intrinsic Value: DCF (Dividends Based)	Get a 7-Day Free Trial															77.04	66.33	65.06	57.72	67.02

Competitive Comparison of Carriage Services's Intrinsic Value: DCF (Dividends Based)

For the Personal Services subindustry, Carriage Services'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.

Carriage Services's Price-to-DCF (Dividends Based) Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Carriage Services's Price-to-DCF (Dividends Based) distribution charts can be found below:

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

Carriage Services 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 4.66%. 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 = 19.60%
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.
=> Carriage Services's average Dividend Growth Rate in the past 10 years was 19.60%, which is between 5% and 20%. => GuruFocus defaults => Growth Rate: 19.60%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Dividends per Share: adjusted dividends per share = $2.0016.
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.

Carriage Services'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+0.196)/(1+0.11) = 1.0774774774775
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694

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)]

2.0016

30.4222

60.89

Margin of Safety % (DCF Dividends Based)	=	(Intrinsic Value: DCF (Dividends Based)	-	Current Price)	/	Intrinsic Value: DCF (Dividends Based)
	=	(60.89	-	24.92)	/	60.89
	=	59.07 %

Carriage Services (NYSE:CSV) 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.

Carriage Services Intrinsic Value: DCF (Dividends Based) Related Terms

Thank you for viewing the detailed overview of Carriage Services's Intrinsic Value: DCF (Dividends Based) provided by GuruFocus.com. Please click on the following links to see related term pages.

Carriage Services (Carriage Services) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Personal Services » Carriage Services Inc (NYSE:CSV) » Definitions » Intrinsic Value: DCF (Dividends Based)

Comparable Companies

Traded in Other Exchanges

C57:Germany

Address

3040 Post Oak Boulevard, Suite 300, Houston, TX, USA, 77056

Website

https://www.carriageservices.com

Carriage Services Inc is a leading provider of funeral and cemetery services and merchandise in the United States. It operates in two business segments: The Funeral Home Operations segment offers burial, cremation, and consultation services; removes and prepares remains; sells caskets, urns, and related funeral merchandise; and enables the use of funeral home facilities for visitation, remembrance, and transportation services. The Cemetery Operations segment provides services, such as mausoleum crypts, private estates, lawn crypt gardens, traditional single burial gravesites, and burial vaults. The majority of revenue is derived from The Funeral Home Operations segment.

Executives

Julie Sanders	director	3040 POST OAK BLVD., CARRIAGE SERVICES, SUITE 300, HOUSTON TX 77056
Somer Webb	director	C/O SOLO BRANDS, INC., 1001 MUSTANG DRIVE, GRAPEVILLE TX 76051
Charles Fargason	director	11510 QUAIL HOLLOW LANE, HOUSTON TX 77024
Melvin C Payne	director, officer: CEO	3040 POST OAK BLVD, SUITE 300, HOUSTON TX 77056
Paul Donald Elliott	other: Regional Partner	5219 LAURELWOOD, KINGWOOD TX 77345
Shane Pudenz	officer: VP of Sales and Marketing	3040 POST OAK BLVD., CARRIAGE SERVICES, SUITE 200, HOUSTON TX 77056
Lance Kian Granmayeh	officer: EVP, CFO and Treasurer	1201 LOUISIANA STREET, SUITE 3100, HOUSTON TX 77002
Patteson Donald Douglas Jr	director	1111 BAGBY, SUITE 1600, HOUSTON TX 77002
Adeola Olaniyan	other: Principal Accounting Officer	3040 POST OAK BLVD., SUITE 300, HOUSTON TX 77056
Steven D Metzger	other: Senior VP and General Counsel	6332 SCHILLER STREET, HOUSTON TX 77055
Carlos R. Quezada	officer: VP of Cemetery Sales/Marketing	3040 POST OAK BLVD., SUITE 300, HOUSTON TX 77056
Carl Benjamin Brink	officer: Principal Financial Officer	28634 PLEASANT FOREST DRIVE, KATY TX 77056
Robbie Pape	other: Sr. VP & Regional Partner	3040 POST OAK BLVD, SUITE 300, HOUSTON TX 77056
Peggy Schappaugh	officer: VP of Operations & Acquistions	3040 POST OAK BLVD., SUITE 300, HOUSTON TX 77056
Shawn R Phillips	other: Regional Partner	3040 POST OAK BLVD, SUITE 300, HOUSTON TX 77056