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New Relic (LTS:0K79) Intrinsic Value: Projected FCF : $9.62 (As of Jun. 06, 2024)


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What is New Relic 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 (2024-06-06), New Relic's Intrinsic Value: Projected FCF is $9.62. The stock price of New Relic is $75.48. Therefore, New Relic's Price-to-Intrinsic-Value-Projected-FCF of today is 7.9.

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

LTS:0K79' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 5.23   Med: 7.24   Max: 14.27
Current: 7.85

During the past 12 years, the highest Price-to-Intrinsic-Value-Projected-FCF of New Relic was 14.27. The lowest was 5.23. And the median was 7.24.

LTS:0K79's Price-to-Projected-FCF is not ranked
in the Software industry.
Industry Median: 1.595 vs LTS:0K79: 7.85

New Relic Intrinsic Value: Projected FCF Historical Data

The historical data trend for New Relic'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.

New Relic Intrinsic Value: Projected FCF Chart

New Relic Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.40 7.86 9.22 6.24 10.43

New Relic 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 10.71 9.87 10.43 14.44 9.62

Competitive Comparison of New Relic's Intrinsic Value: Projected FCF

For the Software - Application subindustry, New Relic'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.


New Relic's Price-to-Projected-FCF Distribution in the Software Industry

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

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



New Relic 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 New Relic's Free Cash Flow(6 year avg) = $30.43.

New Relic'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)
=(12.782718065916*30.42768+387.438*0.8)/70.484
=9.92

* 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.


New Relic  (LTS:0K79) 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.

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

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=75.48/9.915709307643
=7.61

* 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.


New Relic Intrinsic Value: Projected FCF Related Terms

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New Relic (LTS:0K79) Business Description

Industry
Traded in Other Exchanges
N/A
Address
188 Spear Street, Suite 1000, San Francisco, CA, USA, 94105
New Relic Inc is a provider of software analytics solutions for organizations to collect, store, and analyze massive amounts of software data in real-time. The firm's flagship New Relic Software Analytics Cloud is made up of a suite of products, a Big Data database, and an open platform. Its solutions include diagnostics, reporting and alerting, transaction monitoring, and performance monitoring capabilities. The firm generates revenue from subscription-based arrangements for software offerings, typically for a year. A majority of the firm's revenue is generated in the United States, and the rest from Europe, the Middle East, and Africa; the Asia-Pacific; and other regions.

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