What is Discover Financial Services Intrinsic Value: Projected FCF?
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 (2024-04-25), Discover Financial Services's Intrinsic Value: Projected FCF is $419.98. The stock price of Discover Financial Services is $129.02. Therefore, Discover Financial Services's Price-to-Intrinsic-Value-Projected-FCF of today is 0.3.
The historical rank and industry rank for Discover Financial Services's Intrinsic Value: Projected FCF or its related term are showing as below:
DFS'
s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.27 Med: 0.39 Max: 0.68
Current: 0.31
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Discover Financial Services was 0.68. The lowest was 0.27. And the median was 0.39.
DFS's Price-to-Projected-FCF is ranked better than 79.32% of 295
companies
in the Credit Services industry
Industry Median: 0.84
vs DFS: 0.31
Discover Financial Services Intrinsic Value: Projected FCF Historical Data
The historical data trend for Discover Financial Services's Intrinsic Value: Projected FCF can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Discover Financial Services's Intrinsic Value: Projected FCF
For the Credit Services subindustry, Discover Financial Services's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Discover Financial Services's Price-to-Projected-FCF Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Discover Financial Services's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where Discover Financial Services's Price-to-Projected-FCF falls into.
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 Stockholders Equity.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders 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 median after taking the above ideas into consideration.
Discover Financial Services's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF
=
Share Price
/
Intrinsic Value: Projected FCF
=
129.02
/
406.40448223783
=
0.32
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Discover Financial Services Intrinsic Value: Projected FCF Related Terms
Thank you for viewing the detailed overview of Discover Financial Services's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
Discover Financial Services (Discover Financial Services) Business Description
Discover Financial Services is a bank operating in two distinct segments: direct banking and payment services. The company issues credit and debit cards and provides other consumer banking products including deposit accounts, students loans, and other personal loans. It also operates the Discover, Pulse, and Diners Club networks. The Discover network is the fourth-largest payment network in the United States as ranked by overall purchase volume, and Pulse is one of the largest ATM networks in the country.
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