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Psychemedics (Psychemedics) Intrinsic Value: Projected FCF : $3.36 (As of May. 04, 2024)


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What is Psychemedics 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 (2024-05-04), Psychemedics's Intrinsic Value: Projected FCF is $3.36. The stock price of Psychemedics is $2.55. Therefore, Psychemedics's Price-to-Intrinsic-Value-Projected-FCF of today is 0.8.

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

PMD' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.6   Med: 1.04   Max: 3.47
Current: 0.76

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Psychemedics was 3.47. The lowest was 0.60. And the median was 1.04.

PMD's Price-to-Projected-FCF is ranked better than
76.84% of 95 companies
in the Medical Diagnostics & Research industry
Industry Median: 1.6 vs PMD: 0.76

Psychemedics Intrinsic Value: Projected FCF Historical Data

The historical data trend for Psychemedics'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.

Psychemedics Intrinsic Value: Projected FCF Chart

Psychemedics Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.54 8.47 7.70 6.78 3.36

Psychemedics Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 6.78 5.95 4.43 4.25 3.36

Competitive Comparison of Psychemedics's Intrinsic Value: Projected FCF

For the Diagnostics & Research subindustry, Psychemedics'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.


Psychemedics's Price-to-Projected-FCF Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Psychemedics's Price-to-Projected-FCF distribution charts can be found below:

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



Psychemedics 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 Psychemedics's Free Cash Flow(6 year avg) = $1.49.

Psychemedics'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 (Dec23)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*1.48752+6.672*0.8)/5.806
=3.36

* 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.


Psychemedics  (NAS:PMD) 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.

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

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=2.55/3.3584763014174
=0.76

* 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.


Psychemedics Intrinsic Value: Projected FCF Related Terms

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


Psychemedics (Psychemedics) Business Description

Traded in Other Exchanges
N/A
Address
289 Great Road, Suite 200, Acton, MA, USA, 01720
Psychemedics Corp is engaged in providing testing services for the detection of drugs of abuse through the analysis of hair samples. The company operates through a single segment of drug testing services which include training for the collection of samples and storage of positive samples for its customers for an agreed-upon fee per unit testing of samples. The testing methods of the company utilize a patented technology that digests the hair and releases drugs trapped in the hair without destroying the drugs. Geographically it generates the majority of its revenue from the United States.
Executives
Shannon Shoemaker officer: Chief Revenue Officer 289 GREAT ROAD, SUITE 200, ACTON MA 01720
Charles M Doucot officer: Executive Vice President 289 GREAT ROAD, SUITE 200, ACTON MA 01720
Andrew Reynolds director C/O FLEETMATICS, 1100 WINTER STREET, 4TH FL, WALTHAM MA 02451
Brian Hullinger director, officer: President & CEO 289 GREAT ROAD, SUITE 200, ACTON MA 01720
Robyn C Davis director ONE WALLINGFORD ROAD, MARBLEHEAD MA 01945
Michael Weisenhoff other: Assistant Controller 289 GREAT ROAD, SUITE 200, ACTON MA 01720
Michael I Schaffer officer: VP of Laboratory Operations C/O PAYCHEMEDICS CORP, 1280 MASSACHUSETTS AVE STE 200, CAMBRIDGE MA 02138
William B. Norris other: Assistant Controller 289 GREAT ROAD, SUITE 200, ACTON MA 01720
Darius G Nevin other: See Footnote 1 C/O WCI COMMUNITIES, INC., 24301 WALDEN CENTER DRIVE, BONITA SPRINGS FL 34134
Peter H Kamin 10 percent owner 2720 DONALD ROSS ROAD, #311, PALM BEACH GARDENS FL 33410
Andrew Limbek officer: Vice President & Controller 289 GREAT ROAD, SUITE 200, ACTON MA 01720
Fred J Weinert director 330 E MAIN ST, BARRINGTON IL 60620
Kubacki Raymond C Jr director, officer: Chairman, CEO & President 125 NAGOG PARK, ACTON MA 01720
A Clinton Allen director, officer: Chairman 1280 MASSACHUSETTS AVE STE 200, CAMBRIDGE MA 02138
Neil Lerner officer: VP - Finance C/O PSYCHEMEDICS CORPORATION, 125 NAGOG PARK, ACTON MA 01720