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Benchmark Electronics Inc (NYSE:BHE)
Intrinsic Value: Projected FCF
$32.76 (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, Benchmark Electronics Inc's projected FCF intrinsic value is $32.76. The stock price of Benchmark Electronics Inc is $21.51. Therefore, Benchmark Electronics Inc's Price to Intrinsic Value: Projected FCF Ratio of today is 0.7.

BHE' s Price to Intrinsic Value: Projected FCF Range Over the Past 10 Years
Min: 0.54   Max: 23.87
Current: 0.65

0.54
23.87

During the past 13 years, the highest Price to Intrinsic Value: Projected FCF Ratio of Benchmark Electronics Inc was 23.87. The lowest was 0.54. And the median was 0.85.

BHE's Price to Intrinsic Value: Projected FCF is ranked higher than
75% of the 1271 Companies
in the Global Contract Manufacturers industry.

( Industry Median: 1.05 vs. BHE: 0.65 )

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 Benchmark Electronics Inc's FCF(6 year avg) is calculate as

Benchmark Electronics Inc Quarterly Data

201309201312201403201406201409201412201503201506201509201512
total_freecashflow 32-94692115-2844700
201103201106201109201112201203201206201209201212201303201306
total_freecashflow -12-13-2533-36323867426
201003201006201009201012
total_freecashflow -4-3443

Add all the Free Cash Flow together and divide 6 will get Benchmark Electronics Inc's FCF(6 year avg) = $50.25.

Benchmark Electronics Inc's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Dec15)*0.8)/Shares Outstanding
=(12.6954224984*50.2463333333+1321.904*0.8)/52.088
=32.55

* 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.

Benchmark Electronics 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
=21.51/32.5491789022
=0.66

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


Related Terms

Intrinsic Value: DCF (Earnings Based), Intrinsic Value: DCF (FCF Based), Free Cash Flow


Historical Data

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

Benchmark Electronics Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Projected FCF 19.3023.7019.6721.2121.2623.0431.0227.9532.350.00

Benchmark Electronics Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Projected FCF 28.7227.9529.1430.4729.5032.3529.2430.9432.760.00
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