Switch to:
KKR Financial Holdings LLC (NYSE:KFN)
Intrinsic Value (DCF Projected)
\$0.00 (As of Today)

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value (DCF), or Discounted Earnings (DCE) Intrinsic Value (DE) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Discounted 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, KKR Financial Holdings LLC's DCF projected intrinsic value is \$0.00. The stock price of KKR Financial Holdings LLC is \$11.54. Therefore, KKR Financial Holdings LLC's Price to Intrinsic Value (DCF Projected) Ratio of today is 0.0.

KFN' s 10-Year Price to Intrinsic Value (DCF Projected) Range
Min: 0   Max: 0
Current: 0

KFN's Price to Intrinsic Value (DCF Projected) is ranked higher than
65% of the 2686 Companies
in the Global Specialty Finance industry.

( Industry Median: 0.00 vs. KFN: 0.00 )

Definition

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value (DCF), or Discounted Earnings (DCE) Intrinsic Value (DE) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Discounted 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 KKR Financial Holdings LLC's FCF(6 year avg) is calculate as

KKR Financial Holdings LLC Quarterly Data

 201112 201203 201206 201209 201212 201303 201306 201309 201312 201403 total_freecashflow 0 0 0 0 0.0 0.0 0.0 0.0 0.0 0.0 200906 200909 200912 201003 201006 201009 201012 201103 201106 201109 total_freecashflow 0 0 0 0 0.0 0.0 0.0 0.0 0.0 0.0 200806 200809 200812 200903 total_freecashflow 0 0 0 0

Add all the Free Cash Flow together and divide 6 will get KKR Financial Holdings LLC's FCF(6 year avg) = \$0.00.

KKR Financial Holdings LLC's DCF Projected Intrinsic Value for today is calculated as

 Intrinsic Value = (Growth Multiple * Free Cash Flow(6 year avg) + Total Equity(Mar14) * 0.8) / Shares Outstanding = (9.52035159596 * 0 + 2579.086 * 0.8) / 204.236 = 10.10

* 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.

KKR Financial Holdings LLC's Price to DCF Projected Intrinsic Value Ratio for today is calculated as

 Price to DCF Projected Intrinsic Value = Share Price / DCF Projected Intrinsic Value = 11.54 / 10.102375683 = 1.14

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

KKR Financial Holdings LLC Annual Data

 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 iv_dcf_share 0.00 0.00 0.00 0.00 0.00 0.00 8.05 7.46 7.27 9.90

KKR Financial Holdings LLC Quarterly Data

 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 iv_dcf_share 7.46 7.68 7.69 7.85 7.27 9.91 9.78 9.78 9.90 10.10
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)