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Chesapeake Lodging Trust (NYSE:CHSP)
Intrinsic Value: Projected FCF
$-39.85 (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, Chesapeake Lodging Trust's projected FCF intrinsic value is $-39.85. The stock price of Chesapeake Lodging Trust is $25.51. Therefore, Chesapeake Lodging Trust'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 Chesapeake Lodging Trust's FCF(6 year avg) is calculate as

Chesapeake Lodging Trust Quarterly Data

201403201406201409201412201503201506201509201512201603201606
total_freecashflow -11.314.7-27.4-95.9-160.0-64.147.536.321.241.7
201109201112201203201206201209201212201303201306201309201312
total_freecashflow -27.4-165.4-4.714.7-170.1-27.7-0.9-304.327.018.8
201009201012201103201106
total_freecashflow -98.9-140.8-3.0-254.5

Add all the Free Cash Flow together and divide 6 will get Chesapeake Lodging Trust's FCF(6 year avg) = $-222.41.

Chesapeake Lodging Trust's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Jun16)*0.8)/Shares Outstanding
=(14.8626533105*-222.407666667+1199.707*0.8)/58.864
=-39.85

* 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.

Chesapeake Lodging Trust'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
=25.51/-39.8512238934
=

* 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.

Chesapeake Lodging Trust Annual Data

Dec10Dec11Dec12Dec13Dec14Dec15
Projected FCF 0.000.000.000.000.000.000.000.000.00-49.76

Chesapeake Lodging Trust Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
Projected FCF 0.000.000.000.000.000.000.00-49.76-43.27-39.85
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