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Reckitt Benckiser Group (Reckitt Benckiser Group) Intrinsic Value: Projected FCF : $43.40 (As of Apr. 25, 2024)


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What is Reckitt Benckiser Group 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 (2024-04-25), Reckitt Benckiser Group's Intrinsic Value: Projected FCF is $43.40. The stock price of Reckitt Benckiser Group is $55.784. Therefore, Reckitt Benckiser Group's Price-to-Intrinsic-Value-Projected-FCF of today is 1.3.

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

RBGPF' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.24   Med: 1.67   Max: 2.15
Current: 1.29

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Reckitt Benckiser Group was 2.15. The lowest was 1.24. And the median was 1.67.

RBGPF's Price-to-Projected-FCF is ranked worse than
54.74% of 1224 companies
in the Consumer Packaged Goods industry
Industry Median: 1.12 vs RBGPF: 1.29

Reckitt Benckiser Group Intrinsic Value: Projected FCF Historical Data

The historical data trend for Reckitt Benckiser Group'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.

Reckitt Benckiser Group Intrinsic Value: Projected FCF Chart

Reckitt Benckiser Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 56.08 61.80 45.82 43.94 45.01

Reckitt Benckiser Group Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 45.82 - 43.94 - 45.01

Competitive Comparison of Reckitt Benckiser Group's Intrinsic Value: Projected FCF

For the Household & Personal Products subindustry, Reckitt Benckiser Group'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.


Reckitt Benckiser Group's Price-to-Projected-FCF Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Reckitt Benckiser Group's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Reckitt Benckiser Group's Price-to-Projected-FCF falls into.



Reckitt Benckiser Group 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 Reckitt Benckiser Group's Free Cash Flow(6 year avg) = $2,523.38.

Reckitt Benckiser Group'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*2523.3792857143+10693.671*0.8)/718.284
=45.36

* 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.


Reckitt Benckiser Group  (OTCPK:RBGPF) 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.

Reckitt Benckiser Group's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=55.784/45.355868723199
=1.23

* 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.


Reckitt Benckiser Group Intrinsic Value: Projected FCF Related Terms

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Reckitt Benckiser Group (Reckitt Benckiser Group) Business Description

Traded in Other Exchanges
Address
103-105 Bath Road, Slough, Berkshire, GBR, SL1 3UH
Reckitt Benckiser was formed in 1999 through the merger of the British firm Reckitt & Colman and Dutch-based Benckiser. Recently rebranded under the corporate name Reckitt, it sells a portfolio that includes a variety of household and consumer health brands, such as Lysol, Finish, Durex, and Mucinex, many of which hold the number-one or -two positions in their categories globally. Reckitt has repositioned its portfolio and has entered the infant formula market through the acquisition of Mead Johnson in 2017, expanded its consumer health presence by acquiring Schiff Nutrition, K-Y, and Biofreeze, and has exited the food industry. The firm operates in 60 countries and sells products in more than 200, generating around 35% of sales from emerging markets.

Reckitt Benckiser Group (Reckitt Benckiser Group) Headlines

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