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Liquidity Services (Liquidity Services) Intrinsic Value: Projected FCF

: $10.53 (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 (2024-04-24), Liquidity Services's Intrinsic Value: Projected FCF is $10.53. The stock price of Liquidity Services is $17.18. Therefore, Liquidity Services's Price-to-Intrinsic-Value-Projected-FCF of today is 1.6.

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

LQDT' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.47   Med: 1.31   Max: 4.9
Current: 1.63

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Liquidity Services was 4.90. The lowest was 0.47. And the median was 1.31.

LQDT's Price-to-Projected-FCF is ranked worse than
76.98% of 721 companies
in the Retail - Cyclical industry
Industry Median: 0.8 vs LQDT: 1.63

Liquidity Services Intrinsic Value: Projected FCF Historical Data

The historical data trend for Liquidity Services'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.

Liquidity Services Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.21 4.40 5.62 6.52 9.91

Liquidity Services Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 5.69 7.58 8.81 9.91 10.53

Competitive Comparison

For the Internet Retail subindustry, Liquidity Services'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.


Liquidity Services Price-to-Projected-FCF Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Liquidity Services's Price-to-Projected-FCF distribution charts can be found below:

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



Liquidity Services 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 Liquidity Services's Free Cash Flow(6 year avg) = $19.88.

Liquidity Services'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 (Dec23)*0.8)/Shares Outstanding (Diluted Average)
=(10.265723347005*19.8776+165.379*0.8)/31.938
=10.53

* 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.


Liquidity Services  (NAS:LQDT) 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.

Liquidity Services's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=17.18/10.5316908511
=1.63

* 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.


Liquidity Services Intrinsic Value: Projected FCF Related Terms

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


Liquidity Services (Liquidity Services) Business Description

Traded in Other Exchanges
Address
6931 Arlington Road, Suite 460, Bethesda, MD, USA, 20814
Liquidity Services Inc is an online auction marketplace. It manages and sells inventory and equipment for business and government clients by operating a network of e-commerce marketplaces that enable buyers and sellers to transact in an efficient, automated environment offering across different product categories. The company has four reportable segments: GovDeals, Capital Assets Group (CAG), Retail Supply Chain Group (RSCG), and Machinio. It generates majority of its revenue from Retail Supply Chain Group (RSCG) segment which consists of marketplaces that enable corporations located in the United States and Canada to sell excess, returned, and overstocked consumer goods. Geographically, a substantial portion the company's revenue is generated from its business in United States.
Executives
Steven Weiskircher officer: SVP & CTO 6931 ARLINGTON ROAD, SUITE 200, BETHESDA MD 20814
Angrick William P Iii director, 10 percent owner, officer: Chairman of the Board and CEO C/O LIQUIDITY SERVICES, INC., 1920 L STREET, N.W., 6TH FLOOR, WASHINGTON DC 20036
Novelette Murray officer: Chief Human Resources Officer 6931 ARLINGTON ROAD SUITE 200, BETHESDA MD 20814
John Daunt officer: EVP & COO C/O 6931 ARLINGTON ROAD, SUITE 200, BETHESDA MD 20814
George H Ellis director 2911 TURTLE CREEK BOULEVARD, SUITE 1100, DALLAS TX 75219
Jorge Celaya officer: EVP & Chief Financial Officer 1920 L STREET NW, 6TH FLOOR, WASHINGTON DC 20036
Katharin S Dyer director 6931 ARLINGTON ROAD, SUITE 200, BETHESDA MD 20814
Thierno Amath Fall director 6931 ARLINGTON ROAD, SUITE 200, BETHESDA MD 20814
Jaime Mateus-tique director, 10 percent owner, officer: President and Chief Op Officer 1920 L STREET, N.W., 6TH FLOOR, WASHINGTON DC 20036
Mark A Shaffer officer: VP, Gen. Counsel & Secretary C/O LIQUIDITY SERVICES, INC., 1920 L STREET, N.W., 6TH FLOOR, WASHINGTON DC 20036
Edward Kolodzieski director C/O LIQUIDITY SERVICES, INC., 1920 L STREET, N.W., 6TH FLOOR, WASHINGTON DC 20036
Nicholas Rozdilsky officer: Vice President, Marketing C/O 6931 ARLINGTON ROAD, SUITE 200, BETHESDA MD 20814
Beatriz V Infante director 4 TECHNOLOGY PARK DRIVE, SONUS NETWORKS, INC., WESTFORD MA 01886
Sam Guzman officer: VP & Chief Accounting Officer C/O 6931 ARLINGTON ROAD, SUITE 200, BETHESDA MD 20814
Michael Lutz officer: VP, Human Resources C/O 6931 ARLINGTON ROAD, BETHESDA MD 20814