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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 $20.13. 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

201305201308201311201402201405201408201411201502201505201508
total_freecashflow 23.68-23.983.4510.29-19.2010.08-7.8131.909.9013.25
201011201102201105201108201111201202201205201208201211201302
total_freecashflow -7.553.77-8.150.46-1.355.370.546.018.550.61
200911201002201005201008
total_freecashflow -1.32-2.3311.679.03

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
=20.13/30.3283093953
=0.66

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

Kayne Anderson Energy Development Co Annual Data

Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14
Projected FCF 0.000.000.000.000.000.000.000.000.000.00

Kayne Anderson Energy Development Co Quarterly Data

May13Aug13Nov13Feb14May14Aug14Nov14Feb15May15Aug15
Projected FCF 0.000.000.000.000.000.000.000.000.000.00
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