Market Cap : 5.68 B | Enterprise Value : 5.9 B | PE Ratio : 10.62 | PB Ratio : 3.06 |
---|
NYSE:CR has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
NYSE:CR has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
As of today (2022-08-11), Crane Co's intrinsic value calculated from the Discounted Cash Flow model is $87.74.
Note: Discounted Cash Flow model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's predictability rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.
Crane Co's Predictability Rank is 3-Stars.
Margin of Safety (FCF Based) using Discounted Cash Flow model for Crane Co is -15.44%.
The industry rank for Crane Co's Intrinsic Value: DCF (FCF Based) or its related term are showing as below:
CR's Price-to-DCF (FCF Based) is ranked better thanThe historical data trend for Crane Co's Intrinsic Value: DCF (FCF Based) 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.
This is the intrinsic value calculated from the Discounted Cash Flow model with default parameters. In a discounted cash flow model, the future cash flow is estimated based on a cash flow growth rate and a discount rate. The cash flow of the future is discounted to its current value at the discount rate. All of the discounted future cash flow is added together to get the current intrinsic value of the company.
Usually a two-stage model is used when calculating a stock's intrinsic value using a discounted cash flow model. The first stage is called the growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.
GuruFocus DCF calculator is a two-stage model. The default values are defined as:
1. Discount Rate: d = 9%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. We used the 10-Year Treasury Constant Maturity Rate as the risk free rate and rounded up to the nearest integer, then added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.
2. Growth Rate in the growth stage: g1 = 9.60%
Growth Rate in the growth stage = average free cash flow growth rate in the past 10 years. If it is higher than 20%, we use 20%. If it is less than 5%, we use 5% instead. =>
Average Free Cash Flow Growth Rate in the past 10 years was 9.60% which is less than 20% and higher than 5% => Growth Rate: 9.60%
3. Years of Growth Stage: y1 = 10
4. Terminal Growth Rate: g2 = 4%
5. Years of Terminal Growth: y2 = 10
6. Free Cash Flow per Share: fcf = $4.732.
However, GuruFocus DCF calculator is actually a Discounted Earnings calculator, the EPS without NRI is used as the default. The reason we are doing this is we found that historically stock prices are more correlated with earnings than free cash flow.
All of the default settings can be changed and the results are calculated automatically.
Crane Co's Intrinsic Value: DCF (FCF Based) for today is calculated as
Intrinsic Value: DCF (FCF Based) | = | Free Cash Flow per Share | * | {[(1+g1)/(1+d) | + | (1+g1)^2/(1+d)^2 | + | ... | + | (1+g1)^10/(1+d)^10] |
+ | (1+g1)^10/(1+d)^10 | * | [(1+g2)/(1+d) | + | (1+g2)^2/(1+d)^2 | + | ... | + | (1+g2)^10/(1+d)^10]} |
set x = (1+g1)/(1+d) = (1+0.096)/(1+0.09) = 1.005504587156
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.09) = 0.95412844036697
Intrinsic Value: DCF (FCF Based) | = | Free Cash Flow per Share | * | {[x | + | x^2 | + | ... | + | x^10] | + | x^10 | * | [y | + | y^2 | + | ... | + | y^10]} |
= | Free Cash Flow per Share | * | [x | * | (1-x^10) | / | (1-x) | + | x^10 | * | y | * | (1-y^10) | / | (1-y)] | |||||
= | 4.732 | * | 18.542 | |||||||||||||||||
= | 87.74 |
Margin of Safety (FCF Based) | = | (Intrinsic Value: DCF (FCF Based) | - | Current Price) | / | Intrinsic Value: DCF (FCF Based) |
= | (87.74 | - | 101.29) | / | 87.74 | |
= | -15.44 % |
* 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.
Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Cash Flow model evaluates the companies based on their future earnings power instead of their assets.
What you need to know about the DCF model:
1. The DCF model evaluates a company based on its future earnings powerYou can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.
Thank you for viewing the detailed overview of Crane Co's Intrinsic Value: DCF (FCF Based) provided by GuruFocus.com. Please click on the following links to see related term pages.
Grisham Scott A. | officer: SVP Bus. Dev. & Strategy | 100 FIRST STAMFORD PLACE STAMFORD CT 06902 |
Polmanteer Tamara S. | officer: Senior Vice President, CHRO | 100 FIRST STAMFORD PLACE STAMFORD CT 06902 |
Stroup John S | director | 1 N. BRENTWOOD BLVD. SUITE 1500 ST. LOUIS MO 63105 |
Alcala Alejandro | officer: Senior Vice President | 100 FIRST STAMFORD PLACE STAMFORD CT 06902 |
Cristiano Christina | officer: V.P., Controller & PAO | 100 FIRST STAMFORD PLACE STAMFORD CT 06902 |
Dinkins Michael | director | 6166 NW 85TH WAY PARKLAND FL 33067 |
Gallo Kurt F. | officer: Sr. VP, Payment & Merch. Tech. | 100 FIRST STAMFORD PLACE STAMFORD CT 06902 |
D'iorio Anthony M. | officer: General Counsel & Secretary | 100 FIRST STAMFORD PLACE STAMFORD CT 06902 |
Haime Ellen Mcclain | director | 767 THIRD AVE 34TH FL NEW YORK NY 10022 |
Cook Donald G | director | 100 FIRST STAMFORD PLACE STAMFORD CT 06902 |
Pollino Jennifer | director | C/O GOODRICH CORPORATION 2730 W. TYVOLA ROAD CHARLOTTE NC 28217 |
Benante Martin R | director | C/O CURTISS WRIGHT CORP 1200 WALL ST WEST LYNDHURST NJ 07071 |
Scannell Peter O | director | 66 FIELD POINT ROAD GREENWICH CT 06830 |
Lindsay Ronald Carter | director | 100 FIRST STAMFORD PLACE STAMFORD CT 06902 |
Lochner Philip R | director | 699 LAKE AVENUE GREENWICH CT 06830 |
From GuruFocus
By Business Wire 02-15-2022
By Business Wire 01-24-2022
By Business Wire 10-27-2020
Other Sources
By tipranks.com 2022-04-01
By Zacks 2022-01-17
By Zacks 2022-01-24
By Zacks 2021-12-21
By Zacks 2022-03-29
By Zacks 2021-11-10
By Zacks 2021-11-16
By Seekingalpha 2022-01-21
By Zacks 2021-11-23
By Zacks 2022-01-20
By Zacks 2022-01-12
By Zacks 2021-11-29
By Zacks 2022-02-09
By Zacks 2021-12-01