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Intrinsic Value: Projected FCF
\$0.00 (As of Today)

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, Advent Software Inc's projected FCF intrinsic value is \$0.00. The stock price of Advent Software Inc is \$44.24. Therefore, Advent Software Inc's Price to Intrinsic Value: Projected FCF Ratio of today is 0.0.

Definition

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 equity.

Value = ((Growth Multiple)*Free Cash Flow(6 year avg) + 0.8*Total Equity(most recent))/Shares Outstanding

In the case of negative total equity, the following formula is used (see the Total Equity section for the reason):

Value = ((Growth Multiple)*Free Cash Flow(6 year avg) + Total Equity(most recent)/0.8)/Shares Outstanding

Here Advent Software Inc's FCF(6 year avg) is calculate as

 201212 201303 201306 201309 201312 201403 201406 201409 201412 201503 total_freecashflow 31.7 16.2 19.3 21.6 33.8 18.3 19.7 25.3 41.0 4.1 201006 201009 201012 201103 201106 201109 201112 201203 201206 201209 total_freecashflow 11.6 16.6 21 8.6 16.8 20.2 22.6 11.3 11.8 23.4 200906 200909 200912 201003 total_freecashflow 20.2 12.6 18.2 7

Add all the Free Cash Flow together and divide 6 will get Advent Software Inc's FCF(6 year avg) = \$75.50.

Advent Software Inc's Intrinsic Value: Projected FCF for today is calculated as

 Intrinsic Value = (Growth Multiple * Free Cash Flow(6 year avg) + Total Equity(Mar15) / 0.8) / Shares Outstanding = (13.0482228488 * 75.5048333333 + -50.055 / 0.8) / 55.106 = 16.74

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Explanation

The growth multiple is capped between 8.35 and 17.74.

Total 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 medium after taking the above ideas into consideration. Learn more here.

Advent Software Inc's Price to Intrinsic Value: Projected FCF Ratio for today is calculated as

 Price to Intrinsic Value: Projected FCF = Share Price / Intrinsic Value: Projected FCF = 44.24 / 16.7429162249 = 2.64

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.