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Entertainment One (LSE:ETO) Intrinsic Value: Projected FCF : £1.35 (As of Apr. 26, 2024)


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What is Entertainment One 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 (2024-04-26), Entertainment One's Intrinsic Value: Projected FCF is £1.35. The stock price of Entertainment One is £5.57. Therefore, Entertainment One's Price-to-Intrinsic-Value-Projected-FCF of today is 4.1.

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

LSE:ETO' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.44   Med: 0.44   Max: 4.13
Current: 4.13

During the past 12 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Entertainment One was 4.13. The lowest was 0.44. And the median was 0.44.

LSE:ETO's Price-to-Projected-FCF is not ranked
in the Media - Diversified industry.
Industry Median: 0.88 vs LSE:ETO: 4.13

Entertainment One Intrinsic Value: Projected FCF Historical Data

The historical data trend for Entertainment One'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.

Entertainment One Intrinsic Value: Projected FCF Chart

Entertainment One Annual Data
Trend Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.42 1.56 1.26 1.23 1.35

Entertainment One Semi-Annual Data
Sep09 Mar10 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19
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 1.26 - 1.23 - 1.35

Competitive Comparison of Entertainment One's Intrinsic Value: Projected FCF

For the Entertainment subindustry, Entertainment One'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.


Entertainment One's Price-to-Projected-FCF Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Entertainment One's Price-to-Projected-FCF distribution charts can be found below:

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



Entertainment One 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 Entertainment One's Free Cash Flow(6 year avg) = £8.03.

Entertainment One'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 (Mar19)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*8.0285714285714+677.2*0.8)/473.600
=1.31

* 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.


Entertainment One  (LSE:ETO) 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.

Entertainment One's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=5.57/1.3053100143862
=4.27

* 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.


Entertainment One Intrinsic Value: Projected FCF Related Terms

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Entertainment One (LSE:ETO) Business Description

Traded in Other Exchanges
N/A
Address
134 Peter Street, Suite 700, Toronto, ON, CAN, M5V 2H2
Entertainment One Ltd is a diversified media company that specializes in the development, acquisition, production, financing, and distribution of entertainment content. The company is involved in the feature film, television, and music industries. The company has three business segments, which include television, family, and film. The television segment is engaged in the production and acquisition of television and music content. The family segment engaged in the merchandising industry across all forms of media. The film segment is involved in the acquisition and production of feature films. The company generates the vast majority of its revenue in Canada.