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RadNet (RadNet) Intrinsic Value: Projected FCF : $7.20 (As of Apr. 27, 2024)


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What is RadNet 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 (2024-04-27), RadNet's Intrinsic Value: Projected FCF is $7.20. The stock price of RadNet is $48.40. Therefore, RadNet's Price-to-Intrinsic-Value-Projected-FCF of today is 6.7.

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

RDNT' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 2.93   Med: 5.28   Max: 8.78
Current: 6.72

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of RadNet was 8.78. The lowest was 2.93. And the median was 5.28.

RDNT's Price-to-Projected-FCF is ranked worse than
93.68% of 95 companies
in the Medical Diagnostics & Research industry
Industry Median: 1.62 vs RDNT: 6.72

RadNet Intrinsic Value: Projected FCF Historical Data

The historical data trend for RadNet'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.

RadNet Intrinsic Value: Projected FCF Chart

RadNet 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 2.77 6.69 5.70 4.30 7.20

RadNet 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 4.30 2.52 6.87 6.12 7.20

Competitive Comparison of RadNet's Intrinsic Value: Projected FCF

For the Diagnostics & Research subindustry, RadNet'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.


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

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

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



RadNet 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 RadNet's Free Cash Flow(6 year avg) = $-0.76.

RadNet'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)
=(10.993856731996*-0.75632000000001+630.695*0.8)/68.969
=7.20

* 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.


RadNet  (NAS:RDNT) 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.

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

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=48.40/7.1951329767933
=6.73

* 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.


RadNet Intrinsic Value: Projected FCF Related Terms

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RadNet (RadNet) Business Description

Traded in Other Exchanges
Address
1510 Cotner Avenue, Los Angeles, CA, USA, 90025
RadNet Inc is a national provider of diagnostic imaging services that operates in two business segments; Imaging Center segment provides physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders. Services include magnetic resonance imaging (MRI), computed tomography (CT), positron emission tomography (PET), nuclear medicine, mammography, ultrasound, diagnostic radiology (X-ray), fluoroscopy and other related procedures, and Artificial Intelligence segment develops and deploys clinical applications to enhance interpretation of medical images and improve patient outcomes with an emphasis on brain, breast, prostate, and pulmonary diagnostics. The company derives a majority of its revenue from the Imaging center segment.
Executives
Michael N Murdock officer: Executive Vice President 3600 JP MORGAN CHASE TOWER, 2200 ROSS AVENUE, DALLAS TX 752012776
Christine Nayoma Gordon director 3081 PANAMA AVE., CARMICHAEL CA 95608
Gregory Sorensen director, officer: EVP Chief Science Officer C/O DFB HEALTHCARE ACQUISITIONS CORP, 780 THIRD AVENUE, NEW YORK NY 10017
Norman R Hames director, officer: Vice President
Stephen M Forthuber officer: Executive Vice President 3600 JP MORGAN CHASE TOWER, 2200 ROSS AVENUE, DALLAS TX 75201-2776
Ruth Louisa Villigerwilson director, officer: Senior Vice President 3700 WALNUT AVENUE, LONG BEACH CA 90801
David L Swartz director 1510 COTNER AVENUE, LOS ANGELES CA 90025
Gregory E. Spurlock director 4116 E. NORTHRIDGE CIRCLE, MESA AZ 85215-9807
John V Crues director 1510 COTNER AVE, LOS ANGELES CA 90025
Lawrence L Levitt director 2934 1/2 BEVERLY GLEN CIRCLE #325, LOS ANGELES CA 90077
Ranjan Jayanathan officer: Chief Information Officer 13388 HUNT RIDGE ROAD, ELLICOTT CITY MD 21042
Laura Pastre Jacobs director 10154 BRIDLEVALE DRIVE, LOS ANGELES CA 90064
Karen B. Kaplan Survivor's Trust other: Indirect owner 10776 WILSHIRE BLVD/, LOS ANGELES CA 90024-6447
David Jeffrey Katz officer: EVP and General Counsel 1510 COTNER AVE, LOS ANGELES CA 90025
Sherman Michael L Md director

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