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Micron Technology Inc (NAS:MU)
Intrinsic Value: Projected FCF
$22.14 (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, Micron Technology Inc's projected FCF intrinsic value is $22.14. The stock price of Micron Technology Inc is $12.31. Therefore, Micron Technology Inc's Price to Intrinsic Value: Projected FCF Ratio of today is 0.6.

MU' s Price to Intrinsic Value: Projected FCF Range Over the Past 10 Years
Min: 0.48   Max: 14.19
Current: 0.56

0.48
14.19

During the past 13 years, the highest Price to Intrinsic Value: Projected FCF Ratio of Micron Technology Inc was 14.19. The lowest was 0.48. And the median was 2.33.

MU's Price to Intrinsic Value: Projected FCF is ranked higher than
88% of the 474 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 1.29 vs. MU: 0.56 )

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 Micron Technology Inc's FCF(6 year avg) is calculate as

Micron Technology Inc Quarterly Data

201311201402201405201408201411201502201505201508201511201602
total_freecashflow 83882588940923398601-735130-456
201105201108201111201202201205201208201211201302201305201308
total_freecashflow 96-514-293182408118-198-93421239
201005201008201011201102
total_freecashflow 77573026785

Add all the Free Cash Flow together and divide 6 will get Micron Technology Inc's FCF(6 year avg) = $946.00.

Micron Technology Inc's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Feb16)*0.8)/Shares Outstanding
=(13.8782859198*946+12264*0.8)/1036.000
=22.14

* 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.

Micron Technology 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
=12.31/22.1429135908
=0.56

* 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.

Micron Technology Inc Annual Data

Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15
Projected FCF 7.100.85-1.92-0.115.886.115.2110.5618.5222.59

Micron Technology Inc Quarterly Data

Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16
Projected FCF 11.5813.5316.5618.5221.3623.9825.1522.5923.8622.14
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