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Rackspace Hosting (Rackspace Hosting) Intrinsic Value: Projected FCF : $0.00 (As of Apr. 26, 2024)


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What is Rackspace Hosting Intrinsic Value: Projected FCF?

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 (2024-04-26), Rackspace Hosting's Intrinsic Value: Projected FCF is $0.00. The stock price of Rackspace Hosting is $31.99. Therefore, Rackspace Hosting's Price-to-Intrinsic-Value-Projected-FCF of today is 0.0.

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

RAX's Price-to-Projected-FCF is not ranked *
in the Software industry.
Industry Median: 1.59
* Ranked among companies with meaningful Price-to-Projected-FCF only.

Rackspace Hosting Intrinsic Value: Projected FCF Historical Data

The historical data trend for Rackspace Hosting'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.

Rackspace Hosting Intrinsic Value: Projected FCF Chart

Rackspace Hosting Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.48 10.96 11.86 14.26 14.52

Rackspace Hosting Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
Intrinsic Value: Projected FCF Get a 7-Day Free Trial 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 14.50 14.52 16.85 18.54 19.75

Competitive Comparison of Rackspace Hosting's Intrinsic Value: Projected FCF

For the Information Technology Services subindustry, Rackspace Hosting'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.


Rackspace Hosting's Price-to-Projected-FCF Distribution in the Software Industry

For the Software industry and Technology sector, Rackspace Hosting's Price-to-Projected-FCF distribution charts can be found below:

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



Rackspace Hosting 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 Rackspace Hosting's Free Cash Flow(6 year avg) = $114.32.

Rackspace Hosting'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 (Sep16)*0.8)/Shares Outstanding (Diluted Average)
=(14.862653310476*114.32304+1007.4*0.8)/125.8
=19.91

* 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.


Rackspace Hosting  (NYSE:RAX) 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.

Rackspace Hosting's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=31.99/19.913066048646
=1.61

* 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.


Rackspace Hosting Intrinsic Value: Projected FCF Related Terms

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


Rackspace Hosting (Rackspace Hosting) Business Description

Industry
Traded in Other Exchanges
N/A
Address
Rackspace Hosting Inc was incorporated in Delaware in March 2000. The Company, through its operating subsidiaries, is a provider of cloud computing services, managing web-based IT systems for small and medium-sized businesses as well as large enterprises. It offers a portfolio of integrated IT solutions for common business needs, including for ecommerce, web content management, website hosting, data services, office mail and collaboration, and private clouds. It also offers advisory services for technology strategy, security and compliance, application assessment and migration, and DevOps automation. It offers its solutions across a variety of IT form factors, including multi-tenant public cloud, dedicated single-tenant servers, private cloud, and hybrid cloud - all delivered with a commitment to open and standard technologies. Its marketing activities include web-based paid and natural search, participation in technology trade shows, conferences and customer events, advertisements in traditional and electronic (web and email-based) media, and targeted regional public relations activities. Its trademark includes Rackspace, Fanatical Support, and RackConnect. The Company is subject to U.S. federal income tax and various state, local, and international income taxes in numerous jurisdictions.
Executives
Alex Pinchev officer: EVP, Global Sales & Marketing BMC SOFTWARE INC, 2101 CITYWEST BLVD, HOUSTON TX 77042
Lila Tretikov director 149 NEW MONTGOMERY STREET, FLOOR 6, SAN FRANCISCO CA 94105
John E Harper director 2300 WEST PLANO PARKWAY, PLANO TX 75075
Joseph Saporito officer: Chief Accounting Officer
Kevin Costello director C/O ARIBA INC, 807 11TH AVENUE, SUNNYVALE CA 94089
Graham M Weston director, 10 percent owner 425 SOLEDAD SUITE 500, SAN ANTONIO TX 78205
Eugene V Defelice officer: SVP, General Counsel 1506 COVENTRY LANE SOUTHLAKE TX 76092
Michael S Gilliland director 3720 BEVERLY DRIVE, DALLAS TX 75205
Still George J Jr director NORWEST VENTURE PARTNERS, 525 UNIVERSITY AVENUE, SUITE 800, PALO ALTO CA 94301
A Lanham Napier director, officer: CEO 701 W. CASTANO, SAN ANTONIO TX 78209
Palmer L Moe director 5000 WALZEM SAN ANTONIO TX 78218
Wells Fargo & Company/mn 10 percent owner 420 MONTGOMERY STREET, SAN FRANCISCO CA 94163
Promod Haque 10 percent owner C/O NORWEST VENTURE PARTNERS, 525 UNIVERSITY AVENUE, SUITE 800, PALO ALTO CA 94301
Norwest Venture Partners Viii Lp 10 percent owner C/O NORWEST VENTURE PARTNERS 525 UNIVERSITY AVENUE, SUITE 800 PALO ALTO CA 94301
James J Goetz 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025

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