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Spartech Corporation (NYSE:SEH)
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, Spartech Corporation's projected FCF intrinsic value is $0.00. The stock price of Spartech Corporation is $0.00. Therefore, Spartech Corporation's Price to Intrinsic Value: Projected FCF Ratio of today is 0.0.

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

SEH's Price to Intrinsic Value: Projected FCF is ranked lower than
269% of the 548 Companies
in the Global Rubber & Plastics industry.

( Industry Median: 1.38 vs. SEH: 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 Spartech Corporation's FCF(6 year avg) is calculate as

Spartech Corporation Quarterly Data

201007201010201101201104201107201110201201201204201207201210
total_freecashflow 10-4-0-5127-1111158
200801200804200807200810200901200904200907200910201001201004
total_freecashflow 162942-519251866
200701200704200707200710
total_freecashflow 7181628

Add all the Free Cash Flow together and divide 6 will get Spartech Corporation's FCF(6 year avg) = $43.53.

Spartech Corporation's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Oct12)*0.8)/Shares Outstanding
=(9.52035159596*43.5335+179.985*0.8)/30.971
=18.03

* 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.

Spartech Corporation'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
=0.00/18.0311331957
=0.00

* 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.

Spartech Corporation Annual Data

Oct03Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12
Projected FCF 13.9519.0222.7629.0029.3928.4225.9425.4622.0618.08

Spartech Corporation Quarterly Data

Jul10Oct10Jan11Apr11Jul11Oct11Jan12Apr12Jul12Oct12
Projected FCF 27.5825.4626.8025.9624.3422.0620.9120.4619.1118.08
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