Switch to:
Cal-Maine Foods Inc (NAS:CALM)
Intrinsic Value: Projected FCF
$47.28 (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, Cal-Maine Foods Inc's projected FCF intrinsic value is $47.28. The stock price of Cal-Maine Foods Inc is $46.15. Therefore, Cal-Maine Foods Inc's Price to Intrinsic Value: Projected FCF Ratio of today is 1.0.

CALM' s Price to Intrinsic Value: Projected FCF Range Over the Past 10 Years
Min: 0.55   Max: 3.33
Current: 0.98

0.55
3.33

During the past 13 years, the highest Price to Intrinsic Value: Projected FCF Ratio of Cal-Maine Foods Inc was 3.33. The lowest was 0.55. And the median was 0.92.

CALM's Price to Intrinsic Value: Projected FCF is ranked higher than
71% of the 666 Companies
in the Global Packaged Foods industry.

( Industry Median: 1.45 vs. CALM: 0.98 )

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 Cal-Maine Foods Inc's FCF(6 year avg) is calculate as

Cal-Maine Foods Inc Quarterly Data

201402201405201408201411201502201505201508201511201602201605
total_freecashflow 483517849391391281128
201108201111201202201205201208201211201302201305201308201311
total_freecashflow 127375-2519308-202
201008201011201102201105
total_freecashflow -5348-4

Add all the Free Cash Flow together and divide 6 will get Cal-Maine Foods Inc's FCF(6 year avg) = $104.59.

Cal-Maine Foods Inc's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(May16)*0.8)/Shares Outstanding
=(14.8626533105*104.590166667+915.275*0.8)/48.365
=47.28

* 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.

Cal-Maine Foods 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
=46.15/47.2802106245
=0.98

* 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.

Cal-Maine Foods Inc Annual Data

May07May08May09May10May11May12May13May14May15May16
Projected FCF 7.4216.9822.2224.5025.2725.9723.5226.8032.9847.28

Cal-Maine Foods Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
Projected FCF 23.7926.8027.5130.0831.1532.9842.1348.1546.1947.28
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)
FEEDBACK