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Entergy Corp (NYSE:ETR)
Intrinsic Value: Projected FCF
$66.00 (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, Entergy Corp's projected FCF intrinsic value is $66.00. The stock price of Entergy Corp is $68.58. Therefore, Entergy Corp's Price to Intrinsic Value: Projected FCF Ratio of today is 1.0.

ETR' s 10-Year Price to Intrinsic Value: Projected FCF Range
Min: 0.42   Max: 1.55
Current: 1.04

0.42
1.55

During the past 13 years, the highest Price to Intrinsic Value: Projected FCF Ratio of Entergy Corp was 1.55. The lowest was 0.42. And the median was 1.03.

ETR's Price to Intrinsic Value: Projected FCF is ranked higher than
69% of the 258 Companies
in the Global Utilities - Diversified industry.

( Industry Median: 1.61 vs. ETR: 1.04 )

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 Entergy Corp's FCF(6 year avg) is calculate as

Entergy Corp Quarterly Data

201212201303201306201309201312201403201406201409201412201503
total_freecashflow -686-233-105358347141192699201-18
201006201009201012201103201106201109201112201203201206201209
total_freecashflow 1691,108105-464-252611-93-164-142243
200906200909200912201003
total_freecashflow 611-492102161

Add all the Free Cash Flow together and divide 6 will get Entergy Corp's FCF(6 year avg) = $399.70.

Entergy Corp's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Mar15)*0.8)/Shares Outstanding
=(9.52035159596*399.700666667+10133.979*0.8)/180.481
=66.00

* 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.

Entergy Corp'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
=68.58/66.0040341078
=1.04

* 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.

Entergy Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Projected FCF 59.3372.3677.3071.8677.6778.7978.1656.7560.0667.86

Entergy Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
Projected FCF 56.7552.9456.6558.6860.0662.4558.4062.2867.8666.00
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