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Brady Corp (NYSE:BRC)
Intrinsic Value (DCF Projected)
$35.53 (As of Today)

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value (DCF), or Discounted Earnings (DCE) Intrinsic Value (DE) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Discounted 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, Brady Corp's DCF projected intrinsic value is $35.53. The stock price of Brady Corp is $26.58. Therefore, Brady Corp's Price to Intrinsic Value (DCF Projected) Ratio of today is 0.7.

BRC' s 10-Year Price to Intrinsic Value (DCF Projected) Range
Min: 0.5   Max: 1.73
Current: 0.7

0.5
1.73

During the past 13 years, the highest Price to Intrinsic Value (DCF Projected) Ratio of Brady Corp was 1.73. The lowest was 0.50. And the median was 1.15.

BRC's Price to Intrinsic Value (DCF Projected) is ranked higher than
94% of the 1097 Companies
in the Global Business Services industry.

( Industry Median: 6.66 vs. BRC: 0.70 )

Definition

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value (DCF), or Discounted Earnings (DCE) Intrinsic Value (DE) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Discounted 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 Brady Corp's FCF(6 year avg) is calculate as

Brady Corp Quarterly Data

201201201204201207201210201301201304201307201310201401201404
total_freecashflow 2354341414354417822
200907200910201001201004201007201010201101201104201107201110
total_freecashflow 4225284442133548509
200807200810200901200904
total_freecashflow 66-112052

Add all the Free Cash Flow together and divide 6 will get Brady Corp's FCF(6 year avg) = $121.47.

Brady Corp's DCF Projected Intrinsic Value for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Apr14)*0.8)/Shares Outstanding
=(9.52035159596*121.474166667+863.997*0.8)/52.000
=35.53

* 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.

Brady Corp's Price to DCF Projected Intrinsic Value Ratio for today is calculated as

Price to DCF Projected Intrinsic Value=Share Price/DCF Projected Intrinsic Value
=26.58/35.532199548
=0.75

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


Related Terms

Intrinsic Value (DE), Intrinsic Value (DCF), Free Cash Flow


Historical Data

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

Brady Corp Annual Data

Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13
iv_dcf_share 15.4719.8128.9131.6740.9644.2137.6239.5739.3637.90

Brady Corp Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
iv_dcf_share 39.4439.8939.3641.2341.5140.8437.9037.6136.3335.53
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