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TSR Inc (NAS:TSRI)
Intrinsic Value: Projected FCF
$7.06 (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, TSR Inc's projected FCF intrinsic value is $7.06. The stock price of TSR Inc is $3.63. Therefore, TSR Inc's Price to Intrinsic Value: Projected FCF Ratio of today is 0.5.

TSRI' s Price to Intrinsic Value: Projected FCF Range Over the Past 10 Years
Min: 0.19   Max: 2.08
Current: 0.51

0.19
2.08

During the past 13 years, the highest Price to Intrinsic Value: Projected FCF Ratio of TSR Inc was 2.08. The lowest was 0.19. And the median was 0.72.

TSRI's Price to Intrinsic Value: Projected FCF is ranked higher than
93% of the 1142 Companies
in the Global Software - Application industry.

( Industry Median: 1.53 vs. TSRI: 0.51 )

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

TSR Inc Quarterly Data

201308201311201402201405201408201411201502201505201508201511
total_freecashflow -0.220.000.630.181.37-0.70-0.970.99-0.091.39
201102201105201108201111201202201205201208201211201302201305
total_freecashflow -0.130.580.50-0.46-0.070.370.000.000.000.00
201002201005201008201011
total_freecashflow 0.000.000.040.00

Add all the Free Cash Flow together and divide 6 will get TSR Inc's FCF(6 year avg) = $0.57.

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

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Nov15)*0.8)/Shares Outstanding
=(11.299371299*0.568166666667+9.286*0.8)/1.962
=7.06

* 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.

TSR 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
=3.63/7.05847407053
=0.51

* 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.

TSR Inc Annual Data

May06May07May08May09May10May11May12May13May14May15
Projected FCF 14.0813.6512.3910.419.796.706.454.084.905.47

TSR Inc Quarterly Data

Aug13Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15
Projected FCF 4.244.264.734.906.775.634.745.475.667.06
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