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Xyratex, Ltd. (NAS:XRTX)
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, Xyratex, Ltd.'s projected FCF intrinsic value is $0.00. The stock price of Xyratex, Ltd. is $13.24. Therefore, Xyratex, Ltd.'s Price to Intrinsic Value: Projected FCF Ratio of today is 0.0.

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

XRTX's Price to Intrinsic Value: Projected FCF is ranked lower than
300% of the 839 Companies
in the Global Data Storage industry.

( Industry Median: 1.27 vs. XRTX: 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 Xyratex, Ltd.'s FCF(6 year avg) is calculate as

Xyratex, Ltd. Quarterly Data

201108201111201202201205201208201211201302201305201308201311
total_freecashflow 29.42.826.6-19.0-16.616.031.9-6.1-3.425.6
200902200905200908200911201002201005201008201011201102201105
total_freecashflow 5.7-6.611.113.61.33.131.53.415.034.8
200802200805200808200811
total_freecashflow -10.8-3.2-25.00.4

Add all the Free Cash Flow together and divide 6 will get Xyratex, Ltd.'s FCF(6 year avg) = $26.94.

Xyratex, Ltd.'s Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Nov13)*0.8)/Shares Outstanding
=(9.52035159596*26.9355+294.824*0.8)/27.560
=17.86

* 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.

Xyratex, Ltd.'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
=13.24/17.8626498699
=0.74

* 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.

Xyratex, Ltd. Annual Data

Nov04Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13
Projected FCF 0.000.000.000.009.469.7715.1720.6419.9917.86

Xyratex, Ltd. Quarterly Data

Aug11Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13
Projected FCF 19.4320.6421.9420.7219.9819.9919.4317.4517.1017.86
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