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Sodexo (XPAR:SW) Intrinsic Value: Projected FCF : €72.04 (As of Apr. 28, 2024)


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What is Sodexo 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 (2024-04-28), Sodexo's Intrinsic Value: Projected FCF is €72.04. The stock price of Sodexo is €78.65. Therefore, Sodexo's Price-to-Intrinsic-Value-Projected-FCF of today is 1.1.

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

XPAR:SW' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.77   Med: 1   Max: 1.24
Current: 1.09

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Sodexo was 1.24. The lowest was 0.77. And the median was 1.00.

XPAR:SW's Price-to-Projected-FCF is ranked worse than
57.55% of 662 companies
in the Business Services industry
Industry Median: 0.935 vs XPAR:SW: 1.09

Sodexo Intrinsic Value: Projected FCF Historical Data

The historical data trend for Sodexo'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.

Sodexo Intrinsic Value: Projected FCF Chart

Sodexo Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 68.25 56.79 60.10 67.15 72.04

Sodexo Semi-Annual Data
Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24
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 - 67.15 - 72.04 -

Competitive Comparison of Sodexo's Intrinsic Value: Projected FCF

For the Specialty Business Services subindustry, Sodexo'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.


Sodexo's Price-to-Projected-FCF Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Sodexo's Price-to-Projected-FCF distribution charts can be found below:

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



Sodexo 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 Sodexo's Free Cash Flow(6 year avg) = €736.00.

Sodexo'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 (Aug23)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*736+4541*0.8)/147.698
=72.04

* 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.


Sodexo  (XPAR:SW) 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.

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

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=78.65/72.037392345395
=1.09

* 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.


Sodexo Intrinsic Value: Projected FCF Related Terms

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


Sodexo (XPAR:SW) Business Description

Industry
Traded in Other Exchanges
Address
255 Quai de la Bataille de Stalingrad, Issy-les-Moulineaux (Hauts-de-Seine), Cedex 9, Paris, FRA, 92130
Sodexo is one of the largest food service companies globally, operating in more than 80 countries with annual sales of over EUR 21 billion. Sodexo's model stems from operating on-premise catering facilities, rather than centralised industrial kitchens. While food services remains the largest business segment (58% of revenue in 2022), the company has actively pursued a strategy of diversifying its business activities into other areas, such as facilities-management services, which now represents 38% of group revenue.

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