Switch to:
CSS Industries Inc (NYSE:CSS)
Intrinsic Value: Projected FCF
$57.12 (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, CSS Industries Inc's projected FCF intrinsic value is $57.12. The stock price of CSS Industries Inc is $27.67. Therefore, CSS Industries Inc's Price to Intrinsic Value: Projected FCF Ratio of today is 0.5.

CSS' s Price to Intrinsic Value: Projected FCF Range Over the Past 10 Years
Min: 0.28   Max: 5.12
Current: 0.49

0.28
5.12

During the past 13 years, the highest Price to Intrinsic Value: Projected FCF Ratio of CSS Industries Inc was 5.12. The lowest was 0.28. And the median was 0.54.

CSS's Price to Intrinsic Value: Projected FCF is ranked higher than
87% of the 468 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.10 vs. CSS: 0.49 )

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 CSS Industries Inc's FCF(6 year avg) is calculate as

CSS Industries Inc Quarterly Data

201309201312201403201406201409201412201503201506201509201512
total_freecashflow -24.334.330.4-14.4-18.932.529.9-18.5-21.733.7
201103201106201109201112201203201206201209201212201303201306
total_freecashflow 78.5-43.2-47.856.356.9-25.3-27.247.230.7-17.6
201003201006201009201012
total_freecashflow 69.5-36.1-41.126.5

Add all the Free Cash Flow together and divide 6 will get CSS Industries Inc's FCF(6 year avg) = $31.72.

CSS Industries 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
=(9.52035159596*31.7246666667+274.113*0.8)/9.126
=57.12

* 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.

CSS Industries 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
=27.67/57.1247404045
=0.48

* 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.

CSS Industries Inc Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
Projected FCF 60.7858.2251.8249.8350.5250.0051.2148.4848.0851.90

CSS Industries Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
Projected FCF 60.1955.0648.0853.5260.0457.4651.9053.8056.1057.12
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