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Franklin Resources (LTS:0RT6) Intrinsic Value: Projected FCF : $40.40 (As of Dec. 14, 2024)


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What is Franklin Resources 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 (2024-12-14), Franklin Resources's Intrinsic Value: Projected FCF is $40.40. The stock price of Franklin Resources is $21.951. Therefore, Franklin Resources's Price-to-Intrinsic-Value-Projected-FCF of today is 0.5.

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

LTS:0RT6' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.47   Med: 0.64   Max: 0.95
Current: 0.54

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Franklin Resources was 0.95. The lowest was 0.47. And the median was 0.64.

LTS:0RT6's Price-to-Projected-FCF is ranked better than
75.31% of 972 companies
in the Asset Management industry
Industry Median: 0.895 vs LTS:0RT6: 0.54

Franklin Resources Intrinsic Value: Projected FCF Historical Data

The historical data trend for Franklin Resources'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.

Franklin Resources Intrinsic Value: Projected FCF Chart

Franklin Resources Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 87.62 41.80 46.22 46.02 40.21

Franklin Resources Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 46.02 45.43 43.13 43.17 40.21

Competitive Comparison of Franklin Resources's Intrinsic Value: Projected FCF

For the Asset Management subindustry, Franklin Resources'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.


Franklin Resources's Price-to-Projected-FCF Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Franklin Resources's Price-to-Projected-FCF distribution charts can be found below:

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



Franklin Resources 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 Franklin Resources's Free Cash Flow(6 year avg) = $1,034.83.

Franklin Resources'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 (Sep24)*0.8)/Shares Outstanding (Diluted Average)
=(10.336311950585*1034.832+12508.1*0.8)/517.200
=40.03

* 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.


Franklin Resources  (LTS:0RT6) 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.

Franklin Resources's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=21.951/40.028666605661
=0.55

* 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.


Franklin Resources Intrinsic Value: Projected FCF Related Terms

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


Franklin Resources Business Description

Traded in Other Exchanges
Address
One Franklin Parkway, San Mateo, CA, USA, 94403
Franklin Resources provides investment services for individual and institutional investors. At the end of October 2024, Franklin had $1.631 trillion in managed assets, composed primarily of equity (38%), fixed-income (32%), multi-asset/balanced (11%) funds, alternatives (15%) and money market funds (4%). Distribution tends to be weighted equally between retail investors (53% of AUM) and institutional accounts (45%), with high-net-worth clients accounting for the remainder. Franklin is one of the more global of the us-based asset managers we cover, with 30% of its assets under management invested in global/international strategies and just as much sourced from clients domiciled outside the United States.

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