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Diamond Foods Inc (NAS:DMND)
Intrinsic Value: Projected FCF
\$0.00 (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, Diamond Foods Inc's projected FCF intrinsic value is \$0.00. The stock price of Diamond Foods Inc is \$37.56. Therefore, Diamond Foods 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 Diamond Foods Inc's FCF(6 year avg) is calculate as

Diamond Foods Inc Quarterly Data

 201307 201310 201401 201404 201407 201410 201501 201504 201507 201510 total_freecashflow -2.4 11.6 42.5 -170.6 -5.1 7.0 48.2 -12.3 -22.2 -5.3 201101 201104 201107 201110 201201 201204 201207 201210 201301 201304 total_freecashflow 22.6 -24.8 38 -43 7.1 -28.2 -27.1 5.3 50.0 -17.9 201001 201004 201007 201010 total_freecashflow 19.7 -22.7 2.9 3.2

Add all the Free Cash Flow together and divide 6 will get Diamond Foods Inc's FCF(6 year avg) = \$-20.62.

Diamond Foods Inc's Intrinsic Value: Projected FCF for today is calculated as

 Intrinsic Value = (Growth Multiple * Free Cash Flow(6 year avg) + Total Equity(Oct15) * 0.8) / Shares Outstanding = (9.52035159596 * -20.6176666667 + 314.735 * 0.8) / 31.870 = 1.74

* 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.

Diamond Foods 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 = 37.56 / 1.74146734374 = 21.57

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

Related Terms

Historical Data

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

Diamond Foods Inc Annual Data

 Jul06 Jul07 Jul08 Jul09 Jul10 Jul11 Jul12 Jul13 Jul14 Jul15 Projected FCF 0.00 0.00 0.00 18.96 24.12 26.18 13.27 10.23 2.18 1.19

Diamond Foods Inc Quarterly Data

 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Projected FCF 10.23 12.56 10.73 4.92 2.18 5.16 4.28 3.63 1.19 1.74
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