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Famous Brands (JSE:FBR) Intrinsic Value: Projected FCF : R41.75 (As of Jun. 19, 2024)


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What is Famous Brands 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 (2024-06-19), Famous Brands's Intrinsic Value: Projected FCF is R41.75. The stock price of Famous Brands is R53.00. Therefore, Famous Brands's Price-to-Intrinsic-Value-Projected-FCF of today is 1.3.

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

JSE:FBR' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.2   Med: 2.6   Max: 8.88
Current: 1.25

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Famous Brands was 8.88. The lowest was 1.20. And the median was 2.60.

JSE:FBR's Price-to-Projected-FCF is ranked better than
51.13% of 221 companies
in the Restaurants industry
Industry Median: 1.27 vs JSE:FBR: 1.25

Famous Brands Intrinsic Value: Projected FCF Historical Data

The historical data trend for Famous Brands'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.

Famous Brands Intrinsic Value: Projected FCF Chart

Famous Brands Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 44.08 23.39 29.63 34.42 41.75

Famous Brands Semi-Annual Data
Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24
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 29.63 - 34.42 - 41.75

Competitive Comparison of Famous Brands's Intrinsic Value: Projected FCF

For the Restaurants subindustry, Famous Brands'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.


Famous Brands's Price-to-Projected-FCF Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Famous Brands's Price-to-Projected-FCF distribution charts can be found below:

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



Famous Brands 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 Famous Brands's Free Cash Flow(6 year avg) = R322.15.

Famous Brands'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 (Feb24)*0.8)/Shares Outstanding (Diluted Average)
=(10.623553629896*322.15471428571+951.846*0.8)/100.210
=41.75

* 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.


Famous Brands  (JSE:FBR) 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.

Famous Brands's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=53.00/41.751368968547
=1.27

* 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.


Famous Brands Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of Famous Brands's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Famous Brands (JSE:FBR) Business Description

Traded in Other Exchanges
N/A
Address
478 James Crescent, P.O. Box 2884, Halfway House, Midrand, GT, ZAF, 1685
Famous Brands Ltd owns a portfolio of roughly 30 restaurant chains in Africa and the United Kingdom. Its biggest brands include Steers, Wimpy, Debonairs Pizza, Fishaways, Mr Biggs, and Mugg & Bean. Franchisees operate all of the company's restaurants. Most of the company's revenue comes from its supply chain segment, which is responsible for manufacturing restaurant items and delivering the products to the company's franchisees and other customers. More than three fourths of Famous Brands' restaurants are in South Africa.