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Valspar Corp (NYSE:VAL)
Intrinsic Value (FCF Projected)
$45.25 (As of Today)

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value (DCF), or Discounted Earnings (DCE) Intrinsic Value (DE) 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, Valspar Corp's FCF projected intrinsic value is $45.25. The stock price of Valspar Corp is $84.12. Therefore, Valspar Corp's Price to Intrinsic Value (FCF Projected) Ratio of today is 1.9.

VAL' s 10-Year Price to Intrinsic Value (FCF Projected) Range
Min: 0.56   Max: 4.54
Current: 1.86

0.56
4.54

During the past 13 years, the highest Price to Intrinsic Value (FCF Projected) Ratio of Valspar Corp was 4.54. The lowest was 0.56. And the median was 1.07.

VAL's Price to Intrinsic Value (FCF Projected) is ranked lower than
55% of the 570 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 3.50 vs. VAL: 1.86 )

Definition

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value (DCF), or Discounted Earnings (DCE) Intrinsic Value (DE) 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 Valspar Corp's FCF(6 year avg) is calculate as

Valspar Corp Quarterly Data

201210201301201304201307201310201401201404201407201410201501
total_freecashflow 155-122153139-12-50137150-41
201004201007201010201101201104201107201110201201201204201207
total_freecashflow 5610957-52-34149162-3911133
200904200907200910201001
total_freecashflow 21172157-24

Add all the Free Cash Flow together and divide 6 will get Valspar Corp's FCF(6 year avg) = $249.93.

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

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Jan15)*0.8)/Shares Outstanding
=(12.1008198861*249.933+962.765*0.8)/83.867
=45.25

* 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.

Valspar Corp's Price to FCF Projected Intrinsic Value Ratio for today is calculated as

Price to FCF Projected Intrinsic Value=Share Price/FCF Projected Intrinsic Value
=84.12/45.2455222745
=1.86

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Intrinsic Value (DE), Intrinsic Value (DCF), Free Cash Flow


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Valspar Corp Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
iv_dcf_share 26.8231.4633.3235.9333.1133.4332.0434.1640.2346.10

Valspar Corp Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
iv_dcf_share 34.1634.4935.1337.8340.2340.3339.8543.8446.1045.25
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