Switch to:
GuruFocus has detected 3 Warning Signs with bebe stores Inc \$BEBE.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
bebe stores Inc (NAS:BEBE)
Intrinsic Value: Projected FCF
\$-23.40 (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, bebe stores Inc's projected FCF intrinsic value is \$-23.40. The stock price of bebe stores Inc is \$3.84. Therefore, bebe stores Inc's Price to Intrinsic Value: Projected FCF Ratio of today is 0.0.

During the past 13 years, the highest Price to Intrinsic Value: Projected FCF Ratio of bebe stores Inc was 547.50. The lowest was 0.00. And the median was 1.38.

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 bebe stores Inc's FCF(6 year avg) is calculate as

bebe stores Inc Quarterly Data

 201409 201412 201503 201506 201509 201512 201603 201606 201609 201612 total_freecashflow -29.2 9.4 -20.6 -6.6 -21.9 7.0 -26.2 -4.7 -8.1 19.5 201203 201206 201209 201212 201303 201306 201309 201312 201403 201406 total_freecashflow -16 -14.5 -19.7 1.6 -15.8 0.9 -15.9 2.3 -23.3 -13.2 201103 201106 201109 201112 total_freecashflow -12.3 9.2 -0.2 21.3

Add all the Free Cash Flow together and divide 6 will get bebe stores Inc's FCF(6 year avg) = \$-29.49.

bebe stores Inc's Intrinsic Value: Projected FCF for today is calculated as

 Intrinsic Value = (Growth Multiple * Free Cash Flow(6 year avg) + Total Equity(Dec16) * 0.8) / Shares Outstanding = (9.52035159596 * -29.4911666667 + 115.808 * 0.8) / 8.040 = -23.40

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

bebe stores 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 = 3.84 / -23.3979944828 =

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

bebe stores Inc Annual Data

 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Projected FCF 114.83 125.00 110.11 84.49 73.97 61.20 35.59 8.53 -6.46 -22.47

bebe stores Inc Quarterly Data

 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Projected FCF 0.22 0.04 -3.29 -6.46 -9.96 -15.46 -21.54 -22.47 -23.25 -23.40
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)