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Kayne Anderson Energy Development Co (NYSE:KED)
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, Kayne Anderson Energy Development Co's projected FCF intrinsic value is \$0.00. The stock price of Kayne Anderson Energy Development Co is \$18.86. Therefore, Kayne Anderson Energy Development Co'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 Kayne Anderson Energy Development Co's FCF(6 year avg) is calculate as

Kayne Anderson Energy Development Co Quarterly Data

 201305 201308 201311 201402 201405 201408 201411 201502 201505 201508 total_freecashflow 23.68 -23.98 3.45 10.29 -19.20 10.08 -7.81 31.90 9.90 13.25 201011 201102 201105 201108 201111 201202 201205 201208 201211 201302 total_freecashflow -7.55 3.77 -8.15 0.46 -1.35 5.37 0.54 6.01 8.55 0.61 200911 201002 201005 201008 total_freecashflow -1.32 -2.33 11.67 9.03

Add all the Free Cash Flow together and divide 6 will get Kayne Anderson Energy Development Co's FCF(6 year avg) = \$12.81.

Kayne Anderson Energy Development Co's Intrinsic Value: Projected FCF for today is calculated as

 Intrinsic Value = (Growth Multiple * Free Cash Flow(6 year avg) + Total Equity(Aug15) * 0.8) / Shares Outstanding = (9.52035159596 * 12.8105 + 247.504 * 0.8) / 10.550 = 30.33

* 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.

Kayne Anderson Energy Development Co'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 = 18.86 / 30.3283093953 = 0.62

* 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.

Kayne Anderson Energy Development Co Annual Data

 Nov07 Nov08 Nov09 Nov10 Nov11 Nov12 Nov13 Nov14 Projected FCF 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Kayne Anderson Energy Development Co Quarterly Data

 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Projected FCF 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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