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Investment Technology Group Inc  (NYSE:ITG) Intrinsic Value: Projected FCF: $14.30 (As of Today)

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, Investment Technology Group Inc's projected FCF intrinsic value is $14.30. The stock price of Investment Technology Group Inc is $20.85. Therefore, Investment Technology Group Inc's Price to Intrinsic Value: Projected FCF Ratio of today is 1.5.

NYSE:ITG' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 0.35   Max: 3.61
Current: 1.46

0.35
3.61

During the past 13 years, the highest Price to Intrinsic Value: Projected FCF Ratio of Investment Technology Group Inc was 3.61. The lowest was 0.35. And the median was 1.04.

NYSE:ITG's Price-to-Intrinsic-Value-Projected-FCF is ranked lower than
64% of the 247 Companies
in the Global industry.

( Industry Median: 1.20 vs. NYSE:ITG: 1.46 )

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Investment Technology Group Inc Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Intrinsic Value: Projected FCF Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.77 27.61 19.88 20.46 13.61

Investment Technology Group Inc Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
Intrinsic Value: Projected FCF 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 Premium Member Only Premium Member Only Premium Member Only 11.58 12.07 13.61 12.96 14.30

Competitive Comparison
* 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.


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 equity.

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

In the case of negative total equity, the following formula is used (see the Total Equity section for the reason):

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


Here Investment Technology Group Inc's FCF(6 year avg) is calculate as

Investment Technology Group Inc Quarterly Data

total_freecashflow

Add all the Free Cash Flow together and divide 6 will get Investment Technology Group Inc's FCF(6 year avg) = $16.60.

Investment Technology Group Inc's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Jun17)*0.8)/Shares Outstanding (Diluted Average)
=(9.52035159596*16.5993333333+414.179*0.8)/34.222
=14.30

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

The growth multiple is capped between 8.35 and 17.74.

Total 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 medium after taking the above ideas into consideration. Learn more here.

Investment Technology Group Inc's Price to Intrinsic Value: Projected FCF Ratio for today is calculated as

Price to Intrinsic Value: Projected FCF=Share Price/Intrinsic Value: Projected FCF
=20.85/14.300002618
=1.46

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


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