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Avid Technology (Avid Technology) Intrinsic Value: Projected FCF : $-0.14 (As of Jun. 08, 2024)


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What is Avid Technology 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 (2024-06-08), Avid Technology's Intrinsic Value: Projected FCF is $-0.14. The stock price of Avid Technology is $27.04. Therefore, Avid Technology's Price-to-Intrinsic-Value-Projected-FCF of today is 0.0.

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

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Avid Technology was 45.54. The lowest was 18.09. And the median was 24.41.

AVID's Price-to-Projected-FCF is not ranked *
in the Software industry.
Industry Median: 1.635
* Ranked among companies with meaningful Price-to-Projected-FCF only.

Avid Technology Intrinsic Value: Projected FCF Historical Data

The historical data trend for Avid Technology'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.

Avid Technology Intrinsic Value: Projected FCF Chart

Avid Technology Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only -10.34 -7.95 -5.17 -1.83 1.47

Avid Technology Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 -0.02 1.47 1.31 0.56 -0.14

Competitive Comparison of Avid Technology's Intrinsic Value: Projected FCF

For the Software - Application subindustry, Avid Technology'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.


Avid Technology's Price-to-Projected-FCF Distribution in the Software Industry

For the Software industry and Technology sector, Avid Technology's Price-to-Projected-FCF distribution charts can be found below:

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



Avid Technology 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 Avid Technology's Free Cash Flow(6 year avg) = $15.54.

Avid Technology'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 (Sep23)/0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*15.54+-123.185/0.8)/44.209
=-0.14

* 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.


Avid Technology  (NAS:AVID) 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.

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

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=27.04/-0.13651035306627
=

* 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.


Avid Technology Intrinsic Value: Projected FCF Related Terms

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


Avid Technology (Avid Technology) Business Description

Industry
Traded in Other Exchanges
N/A
Address
75 Blue Sky Drive, Burlington, MA, USA, 01803
Avid Technology Inc develops and sells software and hardware for digital media production and management. Its products are used in production, film studios, cable television stations, recording studios, and other agencies. The company has operations in the U.S.; the Americas; Europe, Middle East, and Africa; and Asia-Pacific. Most of its revenue is split fairly evenly between the U.S. and EMEA. The company's products are organized into suites, including Artist Suite, which includes video editing and digital audio workstations; Media Suite, which provides newsroom management solutions; Studio Suite, which provides tools for on-air programming; and Storage Suite, which provides products for digital storage. It derives most of the revenue from video and audio products and services.
Executives
Kenneth L Gayron officer: EVP & Chief Financial Officer 75 NETWORK DRIVE, BURLINGTON MA 34212
Timothy Claman officer: SVP & GM Video Post & Storage 75 NETWORK DRIVE, BURLINGTON MA 01803
Cordiner Tom J. A. officer: SVP of Global Sales PINEWOOD ROAD, IVER HEATH, BUCKINGHAMSHIRE, ENGLAND X0 01803
David Toomey officer: SVP & GM Audio and Music 75 NETWORK DRIVE, BURLINGTON MA 01830
Mariesa Victoria officer: VP & Chief Accounting Officer 75 NETWORK DRIVE, BURLINGTON MA 01803
Christian Asmar director 152 WEST 57TH STREET, 17TH FLOOR, NEW YORK CITY NY 10019
Dana Ruzicka officer: VP, Chief Product Officer 75 NETWORK DRIVE, BURLINGTON MA 01803
Nancy Hawthorne director AVID TECHNOLOGY, INC., 75 NETWORK DRIVE, BURLINGTON MA 01803
Robert M Bakish director AVID TECHNOLOGY, INC., 75 NETWORK DRIVE, BURLINGTON MA 01803
Lior Netzer officer: SVP & GM, Media & Cloud 75 NETWORK DRIVE, BURLINGTON MA 01803
Kevin W. Riley officer: Chief Technology Officer 75 NETWORK DRIVE, BURLINGTON MA 01803
Garrard Brown officer: Chief Accounting Officer, other: Principal Accounting Officer AVID TECHNOLOGY, INC., 75 NETWORK DRIVE, BURLINGTON MA 01803
Jason A Duva officer: Senior VP & General Counsel, other: Corporate Secretary AVID TECHNOLOGY, INC., 75 NETWORK DRIVE, BURLINGTON MA 01803
Lauren Taylor Wolfe 10 percent owner 3100 CUMBERLAND BOULEVARD, SUITE 1700, ATLANTA GA 30339
Impactive Capital Llc 10 percent owner 152 WEST 57TH, 17TH FLOOR, NEW YORK CITY NY 10019