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Regis Corp (NYSE:RGS)
Intrinsic Value: Projected FCF
$20.52 (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, Regis Corp's projected FCF intrinsic value is $20.52. The stock price of Regis Corp is $12.99. Therefore, Regis Corp's Price to Intrinsic Value: Projected FCF Ratio of today is 0.6.

RGS' s Price to Intrinsic Value: Projected FCF Range Over the Past 10 Years
Min: 0.31   Max: 14.55
Current: 0.63

0.31
14.55

During the past 13 years, the highest Price to Intrinsic Value: Projected FCF Ratio of Regis Corp was 14.55. The lowest was 0.31. And the median was 0.69.

RGS's Price to Intrinsic Value: Projected FCF is ranked higher than
88% of the 50 Companies
in the Global Personal Services industry.

( Industry Median: 1.39 vs. RGS: 0.63 )

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 Regis Corp's FCF(6 year avg) is calculate as

Regis Corp Quarterly Data

201312201403201406201409201412201503201506201509201512201603
total_freecashflow 21231941128133-720
201106201109201112201203201206201209201212201303201306201309
total_freecashflow 61-3221831-1025-7-454
201006201009201012201103
total_freecashflow 19482424

Add all the Free Cash Flow together and divide 6 will get Regis Corp's FCF(6 year avg) = $57.99.

Regis Corp's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Mar16)*0.8)/Shares Outstanding
=(9.52035159596*57.9875+515.171*0.8)/46.991
=20.52

* 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.

Regis Corp'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
=12.99/20.5187841964
=0.63

* 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.

Regis Corp Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
Projected FCF 41.9351.9157.0647.7530.4537.3232.4226.9023.0921.92

Regis Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Projected FCF 24.8523.7923.0923.0323.5423.5621.9221.4421.6420.52
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