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PetSmart Inc (NAS:PETM)
Intrinsic Value: Projected FCF
$0.00 (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, PetSmart Inc's projected FCF intrinsic value is $0.00. The stock price of PetSmart Inc is $82.98. Therefore, PetSmart Inc's Price to Intrinsic Value: Projected FCF Ratio of today is 0.0.

PETM' s 10-Year Price to Intrinsic Value: Projected FCF Range
Min: 0   Max: 0
Current: 0

PETM's Price to Intrinsic Value: Projected FCF is ranked lower than
220% of the 503 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.17 vs. PETM: 0.00 )

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

PetSmart Inc Quarterly Data

201210201301201304201307201310201401201404201407201410201501
total_freecashflow 93260112605624010456880
201004201007201010201101201104201107201110201201201204201207
total_freecashflow 5518512086589962059368
200904200907200910201001
total_freecashflow 1365664198

Add all the Free Cash Flow together and divide 6 will get PetSmart Inc's FCF(6 year avg) = $412.09.

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

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Jan15)*0.8)/Shares Outstanding
=(14.8626533105*412.094166667+1369.987*0.8)/100.198
=72.07

* 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.

PetSmart 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
=82.98/72.0653339432
=1.15

* 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.

PetSmart Inc Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
Projected FCF 11.5015.6015.5719.2628.0533.6740.9153.0066.150.00

PetSmart Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
Projected FCF 44.9753.0056.3259.0160.9666.1569.4071.0173.800.00
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