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Ensco PLC (NYSE:ESV)
Intrinsic Value: Projected FCF
$31.39 (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, Ensco PLC's projected FCF intrinsic value is $31.39. The stock price of Ensco PLC is $9.94. Therefore, Ensco PLC's Price to Intrinsic Value: Projected FCF Ratio of today is 0.3.

ESV' s Price to Intrinsic Value: Projected FCF Range Over the Past 10 Years
Min: 0.33   Max: 7.78
Current: 0.32

0.33
7.78

During the past 13 years, the highest Price to Intrinsic Value: Projected FCF Ratio of Ensco PLC was 7.78. The lowest was 0.33. And the median was 1.59.

ESV's Price to Intrinsic Value: Projected FCF is ranked higher than
75% of the 28 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 0.71 vs. ESV: 0.32 )

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 Ensco PLC's FCF(6 year avg) is calculate as

Ensco PLC Quarterly Data

201312201403201406201409201412201503201506201509201512201603
total_freecashflow 51143215-1915171-93-14825081
201106201109201112201203201206201209201212201303201306201309
total_freecashflow -84-787-2171804038117412-36
201006201009201012201103
total_freecashflow 4-245181-6

Add all the Free Cash Flow together and divide 6 will get Ensco PLC's FCF(6 year avg) = $194.08.

Ensco PLC's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Mar16)*0.8)/Shares Outstanding
=(9.98815675147*194.083333333+6700.7*0.8)/232.500
=31.39

* 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.

Ensco PLC'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
=9.94/31.3939559406
=0.32

* 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.

Ensco PLC Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Projected FCF 26.8038.2051.9261.9962.2260.3653.7453.8040.2028.66

Ensco PLC Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Projected FCF 53.8055.6253.1353.5440.2040.7440.9438.9430.8431.39
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