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Matador Resources Co (NYSE:MTDR)
Intrinsic Value: Projected FCF
$-32.28 (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, Matador Resources Co's projected FCF intrinsic value is $-32.28. The stock price of Matador Resources Co is $20.68. Therefore, Matador Resources 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 Matador Resources Co's FCF(6 year avg) is calculate as

Matador Resources Co Quarterly Data

201312201403201406201409201412201503201506201509201512201603
total_freecashflow -54.6-62.0-60.8-106.8-89.0-48.3-108.2-39.2-92.9-83.4
201106201109201112201203201206201209201212201303201306201309
total_freecashflow -49.3-1.8-25.6-48.3-38.2-51.3-46.1-52.5-39.6-40.9
201006201009201012201103
total_freecashflow -21.8-30.1-67.8-22.6

Add all the Free Cash Flow together and divide 6 will get Matador Resources Co's FCF(6 year avg) = $-213.52.

Matador Resources Co's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Mar16)*0.8)/Shares Outstanding
=(14.8626533105*-213.515166667+524.209*0.8)/85.305
=-32.28

* 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.

Matador Resources 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
=20.68/-32.2845636093
=

* 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.

Matador Resources Co Annual Data

Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Projected FCF 0.000.000.000.000.000.000.000.000.00-32.01

Matador Resources Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Projected FCF 0.000.000.000.000.000.000.00-14.19-32.01-32.28
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