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RWS Holdings (LSE:RWS) Intrinsic Value: Projected FCF : £4.36 (As of May. 01, 2024)


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What is RWS 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 (2024-05-01), RWS Holdings's Intrinsic Value: Projected FCF is £4.36. The stock price of RWS Holdings is £1.726. Therefore, RWS Holdings's Price-to-Intrinsic-Value-Projected-FCF of today is 0.4.

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

LSE:RWS' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.39   Med: 1.77   Max: 2.33
Current: 0.4

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of RWS Holdings was 2.33. The lowest was 0.39. And the median was 1.77.

LSE:RWS's Price-to-Projected-FCF is ranked better than
86.19% of 666 companies
in the Business Services industry
Industry Median: 0.945 vs LSE:RWS: 0.40

RWS Holdings Intrinsic Value: Projected FCF Historical Data

The historical data trend for RWS 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.

RWS Holdings Intrinsic Value: Projected FCF Chart

RWS Holdings Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.68 3.14 3.82 4.41 4.36

RWS Holdings Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 3.82 - 4.41 - 4.36

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

For the Specialty Business Services subindustry, RWS 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.


RWS Holdings's Price-to-Projected-FCF Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, RWS Holdings's Price-to-Projected-FCF distribution charts can be found below:

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



RWS 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 RWS Holdings's Free Cash Flow(6 year avg) = £60.74.

RWS 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 (Sep23)*0.8)/Shares Outstanding (Diluted Average)
=(14.862653310476*60.737285714286+987.3*0.8)/388.262
=4.36

* 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.


RWS Holdings  (LSE:RWS) 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.

RWS 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
=1.726/4.3593172151556
=0.40

* 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.


RWS Holdings Intrinsic Value: Projected FCF Related Terms

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RWS Holdings (LSE:RWS) Business Description

Traded in Other Exchanges
Address
Europa House, Chiltern Park, Chiltern Hill, Chalfont Saint Peter, Buckinghamshire, GBR, SL9 9FG
RWS Holdings PLC is a United Kingdom-based company that provides patent translation, intellectual property, and language support services. The company operates in four reportable segments; Language Services, Regulated Industries, IP Services, and Language, and Content Technology. The majority of revenue is derived from the Language services segment. Geographically, it derives a majority of its revenue from the United States of America, while it also operates in Continental Europe, United States of America and Rest of the world.

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