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Village Super Market Inc (NAS:VLGEA)
Intrinsic Value: Projected FCF
$28.78 (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, Village Super Market Inc's projected FCF intrinsic value is $28.78. The stock price of Village Super Market Inc is $26.65. Therefore, Village Super Market Inc's Price to Intrinsic Value: Projected FCF Ratio of today is 0.9.

VLGEA' s 10-Year Price to Intrinsic Value: Projected FCF Range
Min: 0.42   Max: 1.53
Current: 0.93

0.42
1.53

During the past 13 years, the highest Price to Intrinsic Value: Projected FCF Ratio of Village Super Market Inc was 1.53. The lowest was 0.42. And the median was 0.91.

VLGEA's Price to Intrinsic Value: Projected FCF is ranked higher than
68% of the 217 Companies
in the Global Grocery Stores industry.

( Industry Median: 1.44 vs. VLGEA: 0.93 )

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 Village Super Market Inc's FCF(6 year avg) is calculate as

Village Super Market Inc Quarterly Data

201301201304201307201310201401201404201407201410201501201504
total_freecashflow 18-09-1921-78-430-35
201007201010201101201104201107201110201201201204201207201210
total_freecashflow 72211215-013-0142
200907200910201001201004
total_freecashflow 10-925-7

Add all the Free Cash Flow together and divide 6 will get Village Super Market Inc's FCF(6 year avg) = $20.81.

Village Super Market Inc's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Apr15)*0.8)/Shares Outstanding
=(9.52035159596*20.8108333333+253.029*0.8)/13.917
=28.78

* 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.

Village Super Market 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
=26.65/28.7813214298
=0.93

* 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.

Village Super Market Inc Annual Data

Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14
Projected FCF 14.2317.9420.6324.9527.3828.2630.6635.5334.7115.36

Village Super Market Inc Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
Projected FCF 34.3633.8934.7150.1433.8231.9115.3629.7731.6928.78
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