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Arax Holdings (Arax Holdings) Intrinsic Value: Projected FCF : $-0.31 (As of Jul. 22, 2024)


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What is Arax Holdings Intrinsic Value: Projected FCF?

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 (2024-07-22), Arax Holdings's Intrinsic Value: Projected FCF is $-0.31. The stock price of Arax Holdings is $1.00. Therefore, Arax Holdings's Price-to-Intrinsic-Value-Projected-FCF of today is 0.0.

The historical rank and industry rank for Arax Holdings's Intrinsic Value: Projected FCF or its related term are showing as below:

During the past 9 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Arax Holdings was 11.67. The lowest was 9.09. And the median was 10.38.

ARAT's Price-to-Projected-FCF is not ranked *
in the Software industry.
Industry Median: 1.64
* Ranked among companies with meaningful Price-to-Projected-FCF only.

Arax Holdings Intrinsic Value: Projected FCF Historical Data

The historical data trend for Arax Holdings's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Arax Holdings Intrinsic Value: Projected FCF Chart

Arax Holdings Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct20 Oct21 Oct22 Oct23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only - - - -0.05 -0.19

Arax Holdings Quarterly Data
Apr16 Jul16 Oct16 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.16 0.11 0.06 -0.19 -0.31

Competitive Comparison of Arax Holdings's Intrinsic Value: Projected FCF

For the Software - Infrastructure subindustry, Arax Holdings's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Arax Holdings's Price-to-Projected-FCF Distribution in the Software Industry

For the Software industry and Technology sector, Arax Holdings's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Arax Holdings's Price-to-Projected-FCF falls into.



Arax Holdings Intrinsic Value: Projected FCF Calculation

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 Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Arax Holdings's Free Cash Flow(6 year avg) = $-3.27.

Arax Holdings's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Jan24)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*-3.26736+6.926*0.8)/82.811
=-0.31

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Arax Holdings  (OTCPK:ARAT) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders 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 median after taking the above ideas into consideration.

Arax Holdings's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=1.00/-0.30872246429329
=

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Arax Holdings Intrinsic Value: Projected FCF Related Terms

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Arax Holdings (Arax Holdings) Business Description

Industry
Traded in Other Exchanges
N/A
Address
30 North Gould Street, Sheridan, WY, USA, 82801
Arax Holdings Corp invests in TechFin and blockchain-based software solutions companies. The primary focus of Arax is to fuse decentralized solutions with financial service providers within multiple markets and communication networks to bring blockchain to everyday life.

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