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Taro Pharmaceutical Industries (Taro Pharmaceutical Industries) Intrinsic Value: Projected FCF : $58.68 (As of Apr. 26, 2024)


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What is Taro Pharmaceutical Industries 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), Taro Pharmaceutical Industries's Intrinsic Value: Projected FCF is $58.68. The stock price of Taro Pharmaceutical Industries is $42.48. Therefore, Taro Pharmaceutical Industries's Price-to-Intrinsic-Value-Projected-FCF of today is 0.7.

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

TARO' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.37   Med: 0.71   Max: 2.07
Current: 0.72

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Taro Pharmaceutical Industries was 2.07. The lowest was 0.37. And the median was 0.71.

TARO's Price-to-Projected-FCF is ranked better than
85.31% of 599 companies
in the Drug Manufacturers industry
Industry Median: 1.55 vs TARO: 0.72

Taro Pharmaceutical Industries Intrinsic Value: Projected FCF Historical Data

The historical data trend for Taro Pharmaceutical Industries'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.

Taro Pharmaceutical Industries Intrinsic Value: Projected FCF Chart

Taro Pharmaceutical Industries Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 124.70 126.56 109.61 82.64 65.56

Taro Pharmaceutical Industries 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 31.65 65.56 61.40 60.55 58.68

Competitive Comparison of Taro Pharmaceutical Industries's Intrinsic Value: Projected FCF

For the Drug Manufacturers - Specialty & Generic subindustry, Taro Pharmaceutical Industries'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.


Taro Pharmaceutical Industries's Price-to-Projected-FCF Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Taro Pharmaceutical Industries's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Taro Pharmaceutical Industries's Price-to-Projected-FCF falls into.



Taro Pharmaceutical Industries 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 Taro Pharmaceutical Industries's Free Cash Flow(6 year avg) = $82.15.

Taro Pharmaceutical Industries'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)
=(9.5203515959648*82.1488+1779.093*0.8)/37.585
=58.68

* 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.


Taro Pharmaceutical Industries  (NYSE:TARO) 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.

Taro Pharmaceutical Industries's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=42.48/58.676595960798
=0.72

* 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.


Taro Pharmaceutical Industries Intrinsic Value: Projected FCF Related Terms

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Taro Pharmaceutical Industries (Taro Pharmaceutical Industries) Business Description

Traded in Other Exchanges
Address
14 Hakitor Street, P.O. Box 10347, Haifa Bay, Haifa, ISR, 2624761
Taro Pharmaceutical Industries Ltd produces, researches, develops, and markets pharmaceutical products. Its primary focus includes semi-solid formulations, such as creams and ointments, and other dosage forms such as liquids, capsules, and tablets. The company is engaged in the dermatological and topical, cardiovascular, neuropsychiatric, and anti-inflammatory therapeutic categories. Geographically, it derives a majority of its revenue from the United States and also has a presence in Canada, Israel, and Other Countries.
Executives
Sun Pharma Global Inc 10 percent owner
Sun Pharmaceutical Industries Ltd 10 percent owner, other: Affiliated Party 17/B, MAHAL INDUSTRIAL ESTATE, MAHAKALI CAVES ROAD, ANDEHERI (EAST) K7 400 093
Alkaloida Chemical Co Exclusive Group Ltd. 10 percent owner KABAY JANOS UT 29., TISZAVASVARI K5 4440
Franklin Resources Inc 10 percent owner FRANKLIN RESOURCES INC, ONE FRANKLIN PARKWAY, SAN MATEO CA 94403