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Smith & Nephew Intrinsic Value: Projected FCF

: £9.22 (As of Today)
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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 (2019-10-22), Smith & Nephew's projected FCF intrinsic value is £9.22. The stock price of Smith & Nephew is £16.68. Therefore, Smith & Nephew's Price to Intrinsic Value: Projected FCF Ratio of today is 1.8.

LSE:SN.' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 1.07   Max: 11.07
Current: 1.81

1.07
11.07

During the past 13 years, the highest Price to Intrinsic Value: Projected FCF Ratio of Smith & Nephew was 11.07. The lowest was 1.07. And the median was 2.18.

LSE:SN.'s Price-to-Intrinsic-Value-Projected-FCF is ranked lower than
99.99% of the 105 Companies
in the Medical Devices industry.

( Industry Median: 2.10 vs. LSE:SN.: 1.81 )

Smith & Nephew Intrinsic Value: Projected FCF 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.

Smith & Nephew Annual Data
Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Intrinsic Value: Projected FCF Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.55 5.97 7.13 8.49 9.22

Smith & Nephew Semi-Annual Data
Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19
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 0.00 8.49 0.00 9.22 0.00

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.


Smith & Nephew Intrinsic Value: Projected FCF Distribution

* The bar in red indicates where Smith & Nephew's Intrinsic Value: Projected FCF falls into.



Smith & Nephew 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 equity.

Value = ((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 equity, the following formula is used (see the Total Equity section for the reason):

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


Here Smith & Nephew's FCF(6 year avg) is calculate as

Smith & Nephew Annual Data

total_freecashflow

Add all the adjusted EPS together and divide 6 will get Smith & Nephew's FCF(6 year avg) = £.

Smith & Nephew's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Stockholders Equity(Dec18)*0.8)/Shares Outstanding (Diluted Average)
=(12.8706138905*387.87316667+3850.46000003*0.8)/876.000
=9.22

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


Smith & Nephew  (LSE:SN.) Intrinsic Value: Projected FCF 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.

Smith & Nephew'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
=16.68/9.21522119487
=1.81

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


Smith & Nephew Intrinsic Value: Projected FCF Related Terms


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