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Digital Garage (Digital Garage) Intrinsic Value: Projected FCF : $9.27 (As of Jun. 03, 2024)


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What is Digital Garage 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 (2024-06-03), Digital Garage's Intrinsic Value: Projected FCF is $9.27. The stock price of Digital Garage is $20.19. Therefore, Digital Garage's Price-to-Intrinsic-Value-Projected-FCF of today is 2.2.

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

DLGEF' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 2.18   Med: 4.78   Max: 11.87
Current: 2.18

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Digital Garage was 11.87. The lowest was 2.18. And the median was 4.78.

DLGEF's Price-to-Projected-FCF is ranked worse than
61.77% of 1279 companies
in the Software industry
Industry Median: 1.6 vs DLGEF: 2.18

Digital Garage Intrinsic Value: Projected FCF Historical Data

The historical data trend for Digital Garage'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.

Digital Garage Intrinsic Value: Projected FCF Chart

Digital Garage Annual Data
Trend Jun15 Jun16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.63 4.72 6.93 10.43 6.78

Digital Garage Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 10.43 11.03 9.34 8.41 6.78

Competitive Comparison of Digital Garage's Intrinsic Value: Projected FCF

For the Information Technology Services subindustry, Digital Garage'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.


Digital Garage's Price-to-Projected-FCF Distribution in the Software Industry

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

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



Digital Garage 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 Digital Garage's Free Cash Flow(6 year avg) = $-14.83.

Digital Garage'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 (Mar24)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*-14.82784+595.727*0.8)/47.677
=7.04

* 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.


Digital Garage  (OTCPK:DLGEF) 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.

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

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=20.19/7.0351605552214
=2.87

* 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.


Digital Garage Intrinsic Value: Projected FCF Related Terms

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Digital Garage (Digital Garage) Business Description

Industry
Traded in Other Exchanges
Address
Daikanyama DG Bldg., Tokyo, JPN
Digital Garage Inc integrates three technologies--information technology, marketing technology, and financial technology--into one solution that it provides to its business customers. The company operates three primary business segments. The incubation segment invests in and develops startups and new businesses. The marketing segment provides advertising and promotion solutions that reach consumers. The financial segment offers payment solutions to monetize Internet businesses. The marketing and financial segments provide most of the company's revenue. Digital Garage operates primarily in Japan.

Digital Garage (Digital Garage) Headlines