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International Game Technology PLC (NYSE:IGT)
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, International Game Technology PLC's projected FCF intrinsic value is $0.00. The stock price of International Game Technology PLC is $19.36. Therefore, International Game Technology PLC's Price to Intrinsic Value: Projected FCF Ratio of today is 0.0.

IGT' s 10-Year Price to Intrinsic Value: Projected FCF Range
Min: 0   Max: 0
Current: 0

IGT's Price to Intrinsic Value: Projected FCF is ranked higher than
93% of the 358 Companies
in the Global Gambling industry.

( Industry Median: 1.60 vs. IGT: 0.00 )

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 International Game Technology PLC's FCF(6 year avg) is calculate as

International Game Technology PLC Quarterly Data

201206201209201212201303201306201309201312201403201406201409
total_freecashflow 29632153-2198305-13164335331
200912201003201006201009201012201103201106201109201112201203
total_freecashflow 98125-41660-255143167203597176
200812200903200906200909
total_freecashflow 59613619023

Add all the Free Cash Flow together and divide 6 will get International Game Technology PLC's FCF(6 year avg) = $607.12.

International Game Technology PLC's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Sep14)*0.8)/Shares Outstanding
=(9.52035159596*607.120661395+3187.78350515*0.8)/174.81
=47.65

* 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.

International Game Technology 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
=19.36/47.6530459458
=0.41

* 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.

International Game Technology PLC Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Projected FCF 0.000.000.000.000.000.000.000.000.0045.53

International Game Technology PLC Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Projected FCF 0.000.000.0042.6945.3744.8345.5346.0647.2247.65
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