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Sage Group (The) (Sage Group (The)) Intrinsic Value: Projected FCF

: $20.86 (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), Sage Group (The)'s Intrinsic Value: Projected FCF is $20.86. The stock price of Sage Group (The) is $57.14. Therefore, Sage Group (The)'s Price-to-Intrinsic-Value-Projected-FCF of today is 2.7.

The historical rank and industry rank for Sage Group (The)'s Intrinsic Value: Projected FCF or its related term are showing as below:

SGPYY' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.32   Med: 1.67   Max: 2.89
Current: 2.74

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Sage Group (The) was 2.89. The lowest was 1.32. And the median was 1.67.

SGPYY's Price-to-Projected-FCF is ranked worse than
71.78% of 1265 companies
in the Software industry
Industry Median: 1.59 vs SGPYY: 2.74

Sage Group (The) Intrinsic Value: Projected FCF Historical Data

The historical data trend for Sage Group (The)'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.

Sage Group (The) Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Intrinsic Value: Projected FCF
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.71 23.19 22.16 18.76 20.05

Sage Group (The) Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 22.16 - 18.76 - 20.05

Competitive Comparison

For the Software - Application subindustry, Sage Group (The)'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.


Sage Group (The) Price-to-Projected-FCF Distribution

For the Software industry and Technology sector, Sage Group (The)'s Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Sage Group (The)'s Price-to-Projected-FCF falls into.



Sage Group (The) 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 Sage Group (The)'s Free Cash Flow(6 year avg) = $419.33.

Sage Group (The)'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 (Sep23)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*419.32771428571+1741.337*0.8)/259.000
=20.79

* 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.


Sage Group (The)  (OTCPK:SGPYY) 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.

Sage Group (The)'s Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=57.14/20.792343142596
=2.75

* 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.


Sage Group (The) Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of Sage Group (The)'s Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Sage Group (The) (Sage Group (The)) Business Description

Industry
Traded in Other Exchanges
Address
C23 - 5 & 6 Cobalt Park Way, Cobalt Park, Newcastle upon Tyne, GBR, NE28 9EJ
The Sage Group is a U.K.-based provider of accounting and enterprise resource planning, or ERP, software, predominantly to customers in the U.S. and Europe. The company was founded in 1981 and historically sold on-premises software products with perpetual software licenses. However, the company is transitioning toward cloud connected and cloud native products, sold via software-as-a-service, or SaaS, contracts. Sage's main cloud native products include Sage Accounting, for small businesses, and Sage Intacct, which Sage acquired in 2017, for midsize businesses.