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Transact Technologies (Transact Technologies) Intrinsic Value: Projected FCF

: $1.93 (As of Today)
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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 (2024-04-19), Transact Technologies's Intrinsic Value: Projected FCF is $1.93. The stock price of Transact Technologies is $4.66. Therefore, Transact Technologies's Price-to-Intrinsic-Value-Projected-FCF of today is 2.4.

The historical rank and industry rank for Transact Technologies's Intrinsic Value: Projected FCF or its related term are showing as below:

TACT' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.83   Med: 1.29   Max: 4.39
Current: 2.42

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Transact Technologies was 4.39. The lowest was 0.83. And the median was 1.29.

TACT's Price-to-Projected-FCF is ranked worse than
71.23% of 1616 companies
in the Hardware industry
Industry Median: 1.36 vs TACT: 2.42

Transact Technologies Intrinsic Value: Projected FCF Historical Data

The historical data trend for Transact Technologies's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Transact Technologies Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.87 6.08 4.76 1.44 1.93

Transact Technologies Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Intrinsic Value: Projected FCF Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.44 1.33 1.95 1.70 1.93

Competitive Comparison

For the Computer Hardware subindustry, Transact Technologies's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Transact Technologies Price-to-Projected-FCF Distribution

For the Hardware industry and Technology sector, Transact Technologies's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Transact Technologies's Price-to-Projected-FCF falls into.



Transact Technologies Intrinsic Value: Projected FCF Calculation

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 Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Transact Technologies's Free Cash Flow(6 year avg) = $-1.29.

Transact Technologies's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Dec23)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*-1.28608+39.414*0.8)/10.015
=1.93

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Transact Technologies  (NAS:TACT) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders 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 median after taking the above ideas into consideration.

Transact Technologies's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=4.66/1.9258378651484
=2.42

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Transact Technologies Intrinsic Value: Projected FCF Related Terms

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Transact Technologies (Transact Technologies) Business Description

Traded in Other Exchanges
N/A
Address
2319 Whitney Avenue, One Hamden Center, Suite 3B, Hamden, CT, USA, 06518
Transact Technologies Inc develops and sells software-driven technology and printing solutions. The company's software is sold under BOHA, AccuDate, Epic, EPICENTRAL, Ithaca, and Printrex brand names. It also provides supplies and consumables used in the printing and scanning activities to restaurant and hospitality, banking, retail, casino and gaming, point of sale automation, lottery, medical, mobile, oil, and gas markets. Most of the revenue is derived from the casinos and gaming industry followed by the Foodservice technology market. Its geographical segments are the United States and International, of which the majority of its revenue comes from the United States.
Executives
B. Riley Financial, Inc. 10 percent owner 11100 SANTA MONICA BLVD, SUITE 800, LOS ANGELES CA 90025
Audrey Dunning director 242 MEADOWBROOK DRIVE, CRANBERRY TOWNSHIP PA 16066
325 Master Fund Lp director, 10 percent owner 757 THIRD AVENUE, 20TH FLOOR, NEW YORK NY 10017
325 Capital Gp, Llc director, 10 percent owner 757 THIRD AVENUE, 20TH FLOOR, NEW YORK NY 10017
Gaurav Bahri officer: Chief Revenue Officer 12586 MISTY CREEK LANE, FAIRFAX VA 22033
William Defrances officer: Chief Accounting Officer
Bryant R Riley 10 percent owner C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD, SUITE 400, WOODLAND HILLS CA 91367
B. Riley Securities, Inc. 10 percent owner 11100 SANTA MONICA BLVD, SUITE 800, LOS ANGELES CA 90025
Bart C Shuldman director, officer: Chairman and CEO 6700 PARADISE ROAD, SUITE D, LAS VEGAS NV 89119
Raymond J Harbert 10 percent owner 2100 THIRD AVENUE NORTH, SUITE 600, BIRMINGHAM AL 35203
Kenan Lucas 10 percent owner C/O HARBERT MANAGEMENT CORPORATION, 2100 THIRD AVENUE NORTH, SUITE 600, BIRMINGHAM AL 35203
Harbert Fund Advisors, Inc. 10 percent owner 2100 THIRD AVENUE NORTH, SUITE 600, BIRMINGHAM AL 35203
Harbert Discovery Fund, Lp 10 percent owner HARBERT DISCOVERY FUND GP, LLC, 2100 THIRD AVENUE NORTH, SUITE 600, BIRMINGHAM AL 35203
John F. Bryant 10 percent owner C/O HARBERT MANAGEMENT CORPORATION, 2100 THIRD AVENUE NORTH, SUITE 600, BIRMINGHAM AL 35203
Harbert Management Corp 10 percent owner 2100 THIRD AVENUE NORTH, SUITE 600, BIRMINGHAM AL 35203

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