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Indigo Books & Music (TSX:IDG) Intrinsic Value: Projected FCF : C$9.26 (As of May. 12, 2024)


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What is Indigo Books & Music 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 (2024-05-12), Indigo Books & Music's Intrinsic Value: Projected FCF is C$9.26. The stock price of Indigo Books & Music is C$2.48. Therefore, Indigo Books & Music's Price-to-Intrinsic-Value-Projected-FCF of today is 0.3.

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

TSX:IDG' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.18   Med: 1.67   Max: 5.84
Current: 0.27

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Indigo Books & Music was 5.84. The lowest was 0.18. And the median was 1.67.

TSX:IDG's Price-to-Projected-FCF is ranked better than
87.6% of 726 companies
in the Retail - Cyclical industry
Industry Median: 0.81 vs TSX:IDG: 0.27

Indigo Books & Music Intrinsic Value: Projected FCF Historical Data

The historical data trend for Indigo Books & Music'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.

Indigo Books & Music Intrinsic Value: Projected FCF Chart

Indigo Books & Music 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 -0.56 -3.92 -5.35 -2.42 -1.39

Indigo Books & Music 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 10.85 -1.39 0.66 0.29 9.26

Competitive Comparison of Indigo Books & Music's Intrinsic Value: Projected FCF

For the Specialty Retail subindustry, Indigo Books & Music'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.


Indigo Books & Music's Price-to-Projected-FCF Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Indigo Books & Music's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Indigo Books & Music's Price-to-Projected-FCF falls into.



Indigo Books & Music 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 Indigo Books & Music's Free Cash Flow(6 year avg) = C$35.46.

Indigo Books & Music'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*35.46096+-61.11/0.8)/28.219
=9.26

* 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.


Indigo Books & Music  (TSX:IDG) 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.

Indigo Books & Music's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=2.48/9.256646483945
=0.27

* 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.


Indigo Books & Music Intrinsic Value: Projected FCF Related Terms

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Indigo Books & Music (TSX:IDG) Business Description

Traded in Other Exchanges
Address
620 King Street West, Suite 400, Toronto, ON, CAN, M5V 1M6
Indigo Books & Music Inc is a Canada-based book, gift, and toy retailer. It operates a chain of retail bookstores across all Canada, including approximately 87 superstores under Indigo and Chapters banners names as well as over 80 small format stores under the banners Coles, Indigospirit, SmithBooks, and The Book company. Its digital platforms sell expanded selection of books, gifts, toys, and paper products. It also has interest in Calendar Club of Canada, which operates seasonal kiosks and year-round stores in shopping malls across Canada. The company generates its revenue from Superstores, Small format stores, Online, and Others.

Indigo Books & Music (TSX:IDG) Headlines

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