Switch to:
Big Lots Inc (NYSE:BIG)
Intrinsic Value: Projected FCF
$46.41 (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, Big Lots Inc's projected FCF intrinsic value is $46.41. The stock price of Big Lots Inc is $36.19. Therefore, Big Lots Inc's Price to Intrinsic Value: Projected FCF Ratio of today is 0.8.

BIG' s Price to Intrinsic Value: Projected FCF Range Over the Past 10 Years
Min: 0.49   Max: 18.49
Current: 0.78

0.49
18.49

During the past 13 years, the highest Price to Intrinsic Value: Projected FCF Ratio of Big Lots Inc was 18.49. The lowest was 0.49. And the median was 1.06.

BIG's Price to Intrinsic Value: Projected FCF is ranked higher than
79% of the 342 Companies
in the Global Discount Stores industry.

( Industry Median: 1.72 vs. BIG: 0.78 )

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 Big Lots Inc's FCF(6 year avg) is calculate as

Big Lots Inc Quarterly Data

201307201310201401201404201407201410201501201504201507201510
total_freecashflow -13-1852488633-13123748-8-99
201101201104201107201110201201201204201207201210201301201304
total_freecashflow 255106-43-146270107-79-16428643
201001201004201007201010
total_freecashflow 23596-1-143

Add all the Free Cash Flow together and divide 6 will get Big Lots Inc's FCF(6 year avg) = $173.32.

Big Lots Inc's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Oct15)*0.8)/Shares Outstanding
=(10.1956168062*173.322333333+637.272*0.8)/49.057
=46.41

* 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.

Big Lots 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
=36.19/46.4142873518
=0.78

* 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.

Big Lots Inc Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
Projected FCF 5.4017.5621.7526.6635.4145.9164.0263.4854.3658.29

Big Lots Inc Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
Projected FCF 59.0847.2854.3655.7355.9247.8158.2956.1851.1546.41
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)

GuruFocus Premium Plus Membership

FEEDBACK