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Resources Connection (NAS:RGP) Intrinsic Value: Projected FCF

: $23.46 (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 (2023-10-04), Resources Connection's Intrinsic Value: Projected FCF is $23.46. The stock price of Resources Connection is $14.71. Therefore, Resources Connection's Price-to-Intrinsic-Value-Projected-FCF of today is 0.6.

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

RGP' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.59   Med: 0.82   Max: 1.09
Current: 0.63

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Resources Connection was 1.09. The lowest was 0.59. And the median was 0.82.

RGP's Price-to-Projected-FCF is ranked better than
71.36% of 653 companies
in the Business Services industry
Industry Median: 0.94 vs RGP: 0.63

Resources Connection Intrinsic Value: Projected FCF Historical Data

The historical data trend for Resources Connection'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.

Resources Connection Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
Intrinsic Value: Projected FCF
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.56 18.50 18.21 20.88 23.46

Resources Connection Quarterly Data
Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23
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 20.88 19.71 21.95 22.55 23.46

Competitive Comparison

For the Consulting Services subindustry, Resources Connection's Intrinsic Value: Projected FCF, along with its competitors' market caps and Intrinsic Value: 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.

   

Resources Connection Intrinsic Value: Projected FCF Distribution

For the Business Services industry and Industrials sector, Resources Connection's Intrinsic Value: Projected FCF distribution charts can be found below:

* The bar in red indicates where Resources Connection's Intrinsic Value: Projected FCF falls into.



Resources Connection 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 Resources Connection's Free Cash Flow(6 year avg) = $44.78.

Resources Connection'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 (May23)*0.8)/Shares Outstanding (Diluted Average)
=(10.407385931648*44.7776+414.52*0.8)/34.005
=23.46

* 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.


Resources Connection  (NAS:RGP) 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.

Resources Connection's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=14.71/23.456367131097
=0.63

* 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.


Resources Connection Intrinsic Value: Projected FCF Related Terms

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


Resources Connection (NAS:RGP) Business Description

Resources Connection logo
Traded in Other Exchanges
Address
17101 Armstrong Avenue, Suite 100, Irvine, CA, USA, 92614
Resources Connection Inc provides consulting and business initiative support services primarily through its operative subsidiary, Resources Global Professionals. It has two segments RGP ( Resources Global Professionals.) and Other segments. The company offers transformation and improvement, financial reporting and analysis, strategy development, and program and project management services and support. Its clients operate in the accounting, finance, corporate governance, risk and compliance management, corporate advisory, strategic communications and restructuring, information management, human capital, supply chain management, and legal and regulatory sectors.
Executives
Susan Collyns director 6053 W CENTURY BLVD STE 1100, C/O CALIFORNIA PIZZA KITCHEN INC, LOS ANGLES CA 90045-6430
David P White director 17101 ARMSTRONG AVE., STE 100, IRVINE CA 92614
Lisa Pierozzi director 17101 ARMSTRONG AVE, STE 100, IRVINE CA 92614
Timothy L Brackney officer: President and COO 17101 ARMSTRONG AVE, STE 100, IRVINE CA 92614
Jennifer Y Ryu officer: Interim CFO 17101 ARMSTRONG AVE, STE 100, IRVINE CA 92614
Kate W Duchene officer: President & CEO 17101 ARMSTRONG AVE, STE 100, IRVINE CA 92614
Michael H Wargotz director AXCESS WORLDWIDE, 515 MADISON AVE., 15TH FLOOR, NEW YORK NY 10022
Anne Shih director 17101 ARMSTRONG AVENUE, IRVINE CA 92614
Maltzan Marco Von director 17101 ARMSTRONG AVE, STE 100, IRVINE CA 92614
Herbert M Mueller officer: CFO & EVP
Susan J Crawford director 17101 ARMSTRONG AVE, IRVINE CA 92614
Tracy B Stephens officer: EVP & COO 360 WESTMINSTER, HOUSTON TX 77024
Nathan W Franke officer: EVP and Chief Financial Office 17101 ARMSTRONG AVE, IRVINE CA 92614
Robert F Kistinger director 17101 ARMSTRONG AVE, STE 100, IRVINE CA 92614
Thomas Christopoul director RESOURCES CONNECTION INC, 17101 ARMSTRONG AVENUE, IRVINE CA 92614