Switch to:
GuruFocus has detected 5 Warning Signs with Clorox Co $CLX.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Clorox Co (NYSE:CLX)
Intrinsic Value: Projected FCF
$43.84 (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, Clorox Co's projected FCF intrinsic value is $43.84. The stock price of Clorox Co is $137.81. Therefore, Clorox Co's Price to Intrinsic Value: Projected FCF Ratio of today is 3.1.

CLX' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 0.91   Max: 3.18
Current: 3.14

0.91
3.18

During the past 13 years, the highest Price to Intrinsic Value: Projected FCF Ratio of Clorox Co was 3.18. The lowest was 0.91. And the median was 1.83.

CLX's Price-to-Intrinsic-Value-Projected-FCF is ranked lower than
75% of the 732 Companies
in the Global Household & Personal Products industry.

( Industry Median: 1.59 vs. CLX: 3.14 )

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 Clorox Co's FCF(6 year avg) is calculate as

Clorox Co Quarterly Data

201409201412201503201506201509201512201603201606201609201612
total_freecashflow 2143195337119-221727211142
201203201206201209201212201303201306201309201312201403201406
total_freecashflow 12021415469128234151-4196287
201103201106201109201112
total_freecashflow 11122394-8

Add all the Free Cash Flow together and divide 6 will get Clorox Co's FCF(6 year avg) = $579.50.

Clorox Co's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Dec16)*0.8)/Shares Outstanding
=(9.52035159596*579.5+270*0.8)/130.775
=43.84

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Clorox Co'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
=137.81/43.83898872
=3.14

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Clorox Co Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
Projected FCF 57.9756.1757.6250.5635.0136.7639.0040.2642.2043.48

Clorox Co Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Projected FCF 42.4042.0141.9042.2043.4242.4443.4243.4843.2443.84
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