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Verso (VRS) Intrinsic Value: Projected FCF : $51.33 (As of May. 13, 2024)


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What is Verso 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 (2024-05-13), Verso's Intrinsic Value: Projected FCF is $51.33. The stock price of Verso is $26.99. Therefore, Verso's Price-to-Intrinsic-Value-Projected-FCF of today is 0.5.

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

VRS' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.53   Med: 1.16   Max: 2.74
Current: 0.53

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Verso was 2.74. The lowest was 0.53. And the median was 1.16.

VRS's Price-to-Projected-FCF is not ranked
in the Forest Products industry.
Industry Median: 0.755 vs VRS: 0.53

Verso Intrinsic Value: Projected FCF Historical Data

The historical data trend for Verso'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.

Verso Intrinsic Value: Projected FCF Chart

Verso Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only -11.96 8.16 15.52 10.34 51.39

Verso Quarterly Data
Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21
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 10.34 8.18 19.80 27.31 51.39

Competitive Comparison of Verso's Intrinsic Value: Projected FCF

For the Paper & Paper Products subindustry, Verso'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.


Verso's Price-to-Projected-FCF Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Verso's Price-to-Projected-FCF distribution charts can be found below:

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



Verso 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 Verso's Free Cash Flow(6 year avg) = $50.88.

Verso'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 (Dec21)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*50.88+699*0.8)/29.048
=35.93

* 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.


Verso  (NYSE:VRS) 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.

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

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=26.99/35.926586656661
=0.75

* 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.


Verso Intrinsic Value: Projected FCF Related Terms

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


Verso (VRS) Business Description

Industry
Traded in Other Exchanges
N/A
Address
8540 Gander Creek Drive, Miamisburg, OH, USA, 45342
Verso Corp is a North American producer of printing papers, specialty papers, and pulp. The company produces a wide range of paper products, including coated freesheet, coated groundwood, coated digital, inkjet, supercalendered, and uncoated freesheet. These paper products are used primarily in media and marketing applications, such as catalogs, magazines, advertising brochures, and annual reports. The company also sells kraft pulp, which is used to manufacture tissue products and printing and writing grade paper; however, the group derives the majority of its revenue from its paper products.
Executives
Allen James Campbell officer: SVP and CFO 8540 GANDER CREEK DRIVE, MIAMISBURG OH 45342
Randy J. Nebel director KAPSTONE PAPER AND PACKAGING CORP. 1101 SKOKIE BLVD., SUITE 300 NORTHBROOK IL 60062
Jeffrey E Kirt director 1114 AVENUE OF THE AMERICAS, 27TH FLOOR, NEW YORK NY 10038
Terrence M Dyer officer: SVP - HR & Comm 8540 GANDER CREEK DRIVE, MIAMISBURG OH 45342
John Adam St. director, officer: CEO 8540 GANDER CREEK DRIVE MIAMISBURG OH 45342
Aaron D. Haas officer: SVP - Sales & Mktg 8540 GANDER CREEK DRIVE MIAMISBURG OH 45342
Matthew Archambeau officer: SVP - Mfg & Energy 8540 GANDER CREEK DRIVE MIAMISBURG OH 45342
Nancy M Taylor director TREDEGAR CORP, 1100 BOULDERS PARKWAY, RICHMOND VA 23219
Robert K Beckler director VERSO CORPORATION 8540 GANDER CREEK DRIVE MIAMISBURG OH 45342
Marvin D Cooper director VERSO CORPORATION, 8540 GANDER CREEK DRIVE, MIAMISBURG OH 45342
Sean T Erwin director 8540 GANDER CREEK DRIVE DAYTON OH 45342
Leslie T Lederer other: Former Officer C/O SMURFIT STONE CONTAINER CORP 150 NORTH MICHIGAN AVE CHICAGO IL 60601
Michael A. Weinhold officer: President 8540 GANDER CREEK DRIVE MIAMISBURG OH 45342
Kenneth D Sawyer officer: SVP - HR & Comm 8540 GANDER CREEK DRIVE MIAMISBURG OH 45342
B. Christopher Disantis director, officer: President and CEO 8540 GANDER CREEK DRIVE MIAMISBURG OH 45342