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Mueller Industries Inc (NYSE:MLI)
Intrinsic Value: Projected FCF
USD 28.46 (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, Mueller Industries Inc's projected FCF intrinsic value is USD 28.46. The stock price of Mueller Industries Inc is USD 38.41. Therefore, Mueller Industries Inc's Price to Intrinsic Value: Projected FCF Ratio of today is 1.3.

MLI' s Price to Intrinsic Value: Projected FCF Range Over the Past 10 Years
Min: 0.38   Max: 1.52
Current: 1.34

0.38
1.52

During the past 13 years, the highest Price to Intrinsic Value: Projected FCF Ratio of Mueller Industries Inc was 1.52. The lowest was 0.38. And the median was 0.92.

MLI's Price to Intrinsic Value: Projected FCF is ranked higher than
51% of the 1003 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.37 vs. MLI: 1.34 )

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 Mueller Industries Inc's FCF(6 year avg) is calculate as

Mueller Industries Inc Quarterly Data

201406201409201412201503201506201509201512201603201606201609
total_freecashflow -164676-45725842723
201112201203201206201209201212201303201306201309201312201403
total_freecashflow 79-20143523-2552951-54
201012201103201106201109
total_freecashflow -921-68103

Add all the Free Cash Flow together and divide 6 will get Mueller Industries Inc's FCF(6 year avg) = USD 83.66.

Mueller Industries Inc's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Sep16)*0.8)/Shares Outstanding
=(10.9187776324*83.6646666667+893.772*0.8)/57.217
=28.46

* 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.

Mueller Industries Inc'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
=38.41/28.4624061209
=1.35

* 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.

Mueller Industries Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Projected FCF 22.1126.0727.9321.0219.5920.9919.1530.2629.3428.50

Mueller Industries Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Projected FCF 31.6831.3329.3427.9727.4529.9628.5027.9429.1028.46
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