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CareFusion Corp (NYSE:CFN)
Intrinsic Value: Projected FCF
\$0.00 (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, CareFusion Corp's projected FCF intrinsic value is \$0.00. The stock price of CareFusion Corp is \$59.91. Therefore, CareFusion Corp's Price to Intrinsic Value: Projected FCF Ratio of today is 0.0.

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 CareFusion Corp's FCF(6 year avg) is calculate as

CareFusion Corp Quarterly Data

 201209 201212 201303 201306 201309 201312 201403 201406 201409 201412 total_freecashflow 0 139 145 146 56 204 134 195 47 110 201003 201006 201009 201012 201103 201106 201109 201112 201203 201206 total_freecashflow 0 0 0 0 0 0 0 0 0 0 200903 200906 200909 200912 total_freecashflow 0 43 0 0

Add all the Free Cash Flow together and divide 6 will get CareFusion Corp's FCF(6 year avg) = \$203.17.

CareFusion Corp's Intrinsic Value: Projected FCF for today is calculated as

 Intrinsic Value = (Growth Multiple * Free Cash Flow(6 year avg) + Total Equity(Dec14) * 0.8) / Shares Outstanding = (10.4789486277 * 203.166666667 + 5507 * 0.8) / 207.300 = 31.52

* 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.

CareFusion Corp'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 = 59.91 / 31.5223013163 = 1.90

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

Related Terms

Historical Data

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

CareFusion Corp Annual Data

 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Projected FCF 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 29.98

CareFusion Corp Quarterly Data

 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Projected FCF 0.00 0.00 0.00 0.00 32.71 31.65 27.68 29.98 28.61 31.52
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