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Telular Corporation (NAS:WRLS)
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, Telular Corporation's projected FCF intrinsic value is \$0.00. The stock price of Telular Corporation is \$12.75. Therefore, Telular Corporation's Price to Intrinsic Value: Projected FCF Ratio of today is 0.0.

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 Telular Corporation's FCF(6 year avg) is calculate as

Telular Corporation Quarterly Data

 201012 201103 201106 201109 201112 201203 201206 201209 201212 201303 total_freecashflow -0.55 7.87 1.96 4.05 2.35 1.88 3.58 3.60 -1.84 1.74 200806 200809 200812 200903 200906 200909 200912 201003 201006 201009 total_freecashflow 2.74 3.08 1.97 2.47 3.88 -0.29 0.00 2.73 1.08 3.19 200706 200709 200712 200803 total_freecashflow 3.44 -2.54 -3.34 6.31

Add all the Free Cash Flow together and divide 6 will get Telular Corporation's FCF(6 year avg) = \$8.23.

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

 Intrinsic Value = (Growth Multiple * Free Cash Flow(6 year avg) + Total Equity(Mar13) * 0.8) / Shares Outstanding = (14.8626533105 * 8.22933333333 + 73.868 * 0.8) / 18.018 = 10.07

* 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.

Telular 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 = 12.75 / 10.0679391891 = 1.27

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

Related Terms

Historical Data

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

Telular Corporation Annual Data

 Sep03 Sep04 Sep05 Sep06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Projected FCF 1.08 1.76 1.96 -0.11 -1.04 -0.02 1.35 4.77 5.77 8.37

Telular Corporation Quarterly Data

 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Projected FCF 4.15 5.00 5.22 5.77 6.63 6.93 7.59 8.37 8.27 10.48
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