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Atlassian (Atlassian) Intrinsic Value: Projected FCF

: $39.31 (As of Today)
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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 (2024-04-24), Atlassian's Intrinsic Value: Projected FCF is $39.31. The stock price of Atlassian is $199.29. Therefore, Atlassian's Price-to-Intrinsic-Value-Projected-FCF of today is 5.1.

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

TEAM' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 4.17   Med: 10.04   Max: 17.9
Current: 5.07

During the past 11 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Atlassian was 17.90. The lowest was 4.17. And the median was 10.04.

TEAM's Price-to-Projected-FCF is ranked worse than
84.89% of 1264 companies
in the Software industry
Industry Median: 1.56 vs TEAM: 5.07

Atlassian Intrinsic Value: Projected FCF Historical Data

The historical data trend for Atlassian'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.

Atlassian Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 11.64 22.54 28.54 35.57

Atlassian 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 30.83 33.55 35.57 36.97 39.31

Competitive Comparison

For the Software - Application subindustry, Atlassian'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.


Atlassian Price-to-Projected-FCF Distribution

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

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



Atlassian 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 Atlassian's Free Cash Flow(6 year avg) = $635.21.

Atlassian'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)
=(14.862653310476*635.20528+904.923*0.8)/258.601
=39.31

* 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.


Atlassian  (NAS:TEAM) 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.

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

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=199.29/39.306786352813
=5.07

* 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.


Atlassian Intrinsic Value: Projected FCF Related Terms

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


Atlassian (Atlassian) Business Description

Industry
Traded in Other Exchanges
Address
341 George Street, Level 6, Sydney, NSW, AUS, 2000
Atlassian produces software that helps teams work together more efficiently and effectively. The company provides project planning and management software, collaboration tools, and IT help desk solutions. The company operates in four segments: subscriptions (term licenses and cloud agreements), maintenance (annual maintenance contracts that provide support and periodic updates and are generally attached to perpetual license sales), perpetual license (upfront sale for indefinite usage of the software), and other (training, strategic consulting, and revenue from the Atlassian Marketplace app store). Atlassian was founded in 2002 and is headquartered in Sydney.
Executives
Michael Cannon-brookes director, 10 percent owner, officer: Co-CEO, Co-Founder ATLASSIAN, 350 BUSH STREET, SAN FRANCISCO CA 94104
Scott Farquhar director, 10 percent owner, officer: Co-CEO, Co-Founder ATLASSIAN, 350 BUSH STREET, SAN FRANCISCO CA 94104
Anutthara Bharadwaj officer: Chief Operating Officer C/O ATLASSIAN, 350 BUSH STREET FLOOR 13, SAN FRANCISCO CA 94104
Gene Liu officer: Principal Accounting Officer C/O ATLASSIAN, 350 BUSH STREET FLOOR 13, SAN FRANCISCO CA 94104
Heather Mirjahangir Fernandez director C/O ATLASSIAN, 350 BUSH STREET FLOOR 13, SAN FRANCISCO CA 94104
Rajeev Bashyam Rajan officer: Chief Technology Officer C/O ATLASSIAN, 350 BUSH STREET FLOOR 13, SAN FRANCISCO CA 94104
Cameron Deatsch officer: Chief Revenue Officer C/O ATLASSIAN, 350 BUSH STREET FLOOR 13, SAN FRANCISCO CA 94101
Joseph Leo Binz officer: Chief Financial Officer C/O ATLASSIAN, 350 BUSH STREET FLOOR 13, SAN FRANCISCO CA 94104
Enrique T Salem director SYMANTEC CORPORATION, 20330 STEVENS CREEK BLVD., CUPERTINO CA 95014
Sasan K Goodarzi director C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Shona L Brown director 1600 AMIPHITHEATRE PARKWAY, BUILDING 41, MOUNTAIN VIEW CA 94043
Rich Wong director 428 UNIVERSITY AVE, PALO ALTO CA 94555
Michelle Zatlyn director C/O CLOUDFLARE, INC., 101 TOWNSEND STREET, SAN FRANCISCO CA 94107
Steven J Sordello director C/O LINKEDIN CORPORATION, 2029 STIERLIN COURT, MOUNTAIN VIEW CA 94043
Jay Parikh director 317 UNIVERSITY AVE, SUITE 200, PALO ALTO CA 94301