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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.

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

 201108 201111 201202 201205 201208 201211 201302 201305 201308 201311 total_freecashflow 29.4 2.8 26.6 -19 -16.6 16.0 31.9 -6.1 -3.4 25.6 200902 200905 200908 200911 201002 201005 201008 201011 201102 201105 total_freecashflow 5.7 -6.6 11.1 13.6 1.3 3.1 31.5 3.4 15.0 34.8 200802 200805 200808 200811 total_freecashflow -10.8 -3.2 -25 0.4

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

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

 Nov04 Nov05 Nov06 Nov07 Nov08 Nov09 Nov10 Nov11 Nov12 Nov13 Projected FCF 0.00 0.00 0.00 0.00 9.46 9.77 15.17 20.64 19.99 17.86

Xyratex, Ltd. Quarterly Data

 Aug11 Nov11 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Projected FCF 19.43 20.64 21.94 20.72 19.98 19.99 19.43 17.45 17.10 17.86
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