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Cardiovascular Systems Inc (NAS:CSII)
Intrinsic Value: Projected FCF
$-5.06 (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, Cardiovascular Systems Inc's projected FCF intrinsic value is $-5.06. The stock price of Cardiovascular Systems Inc is $14.61. Therefore, Cardiovascular Systems Inc'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 Cardiovascular Systems Inc's FCF(6 year avg) is calculate as

Cardiovascular Systems Inc Quarterly Data

201309201312201403201406201409201412201503201506201509201512
total_freecashflow -6.0-7.6-6.4-20.3-7.6-15.4-9.4-11.3-6.8-14.0
201103201106201109201112201203201206201209201212201303201306
total_freecashflow -4.0-1.7-2.3-4.6-2.5-3.0-2.1-6.0-2.8-2.4
201003201006201009201012
total_freecashflow -3.6-2.0-1.7-2.7

Add all the Free Cash Flow together and divide 6 will get Cardiovascular Systems Inc's FCF(6 year avg) = $-24.32.

Cardiovascular Systems Inc's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Dec15)*0.8)/Shares Outstanding
=(10.7701541192*-24.3163333333+121.275*0.8)/32.554
=-5.06

* 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.

Cardiovascular Systems 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
=14.61/-5.06452840243
=

* 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.

Cardiovascular Systems Inc Annual Data

Dec06Dec07Dec08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
Projected FCF 0.000.000.00-22.54-9.25-9.38-8.89-5.08-1.09-3.22

Cardiovascular Systems Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Projected FCF -4.22-0.94-0.53-1.09-1.46-1.96-2.56-3.22-3.99-5.06
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