Core-Mark Holding Co (Core-Mark Holding Co) Intrinsic Value: DCF (FCF Based) : $0.00 (As of May. 05, 2024)

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What is Core-Mark Holding Co Intrinsic Value: DCF (FCF Based)?

As of today (2024-05-05), Core-Mark Holding Co's intrinsic value calculated from the Discounted Cash Flow model is $0.00.

Note: Discounted Cash Flow model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's predictability rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

Core-Mark Holding Co's Predictability Rank is 4-Stars.

Margin of Safety (FCF Based) using Discounted Cash Flow model for Core-Mark Holding Co is N/A%.

The industry rank for Core-Mark Holding Co's Intrinsic Value: DCF (FCF Based) or its related term are showing as below:

CORE's Price-to-DCF (FCF Based) is not ranked ^*
in the Retail - Defensive industry.
Industry Median: 0.93
* Ranked among companies with meaningful Price-to-DCF (FCF Based) only.

Core-Mark Holding Co Intrinsic Value: DCF (FCF Based) Historical Data

The historical data trend for Core-Mark Holding Co's Intrinsic Value: DCF (FCF Based) 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.

Core-Mark Holding Co Intrinsic Value: DCF (FCF Based) Chart

Core-Mark Holding Co Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Intrinsic Value: DCF (FCF Based)

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-46.64

11.98

55.53

20.16

41.43

Core-Mark Holding Co Quarterly Data
	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21
Intrinsic Value: DCF (FCF Based)	Get a 7-Day Free Trial															89.25	57.38	41.43	40.96	-49.98

Competitive Comparison of Core-Mark Holding Co's Intrinsic Value: DCF (FCF Based)

For the Food Distribution subindustry, Core-Mark Holding Co's Price-to-DCF (FCF Based), along with its competitors' market caps and Price-to-DCF (FCF Based) 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.

Core-Mark Holding Co's Price-to-DCF (FCF Based) Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Core-Mark Holding Co's Price-to-DCF (FCF Based) distribution charts can be found below:

* The bar in red indicates where Core-Mark Holding Co's Price-to-DCF (FCF Based) falls into.

Core-Mark Holding Co Intrinsic Value: DCF (FCF Based) Calculation

This is the intrinsic value calculated from the Discounted Cash Flow model with default parameters. In a discounted cash flow model, the future cash flow is estimated based on a cash flow growth rate and a discount rate. The cash flow of the future is discounted to its current value at the discount rate. All of the discounted future cash flow is added together to get the current intrinsic value of the company.

Usually a two-stage model is used when calculating a stock's intrinsic value using a discounted cash flow model. The first stage is called the growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DCF calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.50%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Growth Rate in the growth stage: g1 = 20%
The Growth Rate in the growth stage is initially set as the default 10-Year FCF Growth Rate (Per Share). In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year FCF Growth Rate (Per Share). If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year FCF Growth Rate (Per Share).
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=> Core-Mark Holding Co's average Free Cash Flow Growth Rate in the past 3 years was 42.90%, which is no less than 20%. GuruFocus defaults => Growth Rate: 20%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Years of Terminal Growth: y2 = 10

6. Free Cash Flow per Share: fcf = $0.000.
However, GuruFocus DCF calculator is actually a Discounted Earnings calculator, the EPS without NRI is used as the default. The reason we are doing this is we found that historically stock prices are more correlated with earnings than free cash flow.

All of the default settings can be changed and the results are calculated automatically.

Core-Mark Holding Co's Intrinsic Value: DCF (FCF Based) for today is calculated as

Intrinsic Value: DCF (FCF Based)	=	Free Cash Flow per Share	*	{[(1+g1)/(1+d)	+	(1+g1)^2/(1+d)^2	+	...	+	(1+g1)^10/(1+d)^10]
	+	(1+g1)^10/(1+d)^10	*	[(1+g2)/(1+d)	+	(1+g2)^2/(1+d)^2	+	...	+	(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+0.2)/(1+0.11) = 1.0810810810811
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694

Intrinsic Value: DCF (FCF Based)

Free Cash Flow per Share

{[x

x^2

...

x^10]

x^10

y^2

...

y^10]}

Free Cash Flow per Share

(1-x^10)

(1-x)

x^10

(1-y^10)

(1-y)]

0.000

31.2501

0.00

Margin of Safety (FCF Based)	=	(Intrinsic Value: DCF (FCF Based)	-	Current Price)	/	Intrinsic Value: DCF (FCF Based)
	=	(0	-	45.65)	/	0
	=	N/A %

Core-Mark Holding Co (NAS:CORE) Intrinsic Value: DCF (FCF Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Cash Flow model evaluates the companies based on their future earnings power instead of their assets.

Be Aware

What you need to know about the DCF model:

1. The DCF model evaluates a company based on its future earnings power
2. Growth is taken into account; therefore a faster growth company is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies that have relatively consistent performance.
4. The DCF model works poorly for inconsistent performers such as cyclicals.
5. What discount rate should you use? Your expected return from the investment is a good discount rate assumption.
6. A larger margin of safety should be required for companies with less predictable businesses.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.

Core-Mark Holding Co Intrinsic Value: DCF (FCF Based) Related Terms

Thank you for viewing the detailed overview of Core-Mark Holding Co's Intrinsic Value: DCF (FCF Based) provided by GuruFocus.com. Please click on the following links to see related term pages.

Core-Mark Holding Co (Core-Mark Holding Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Core-Mark Holding Co Inc (NAS:CORE) » Definitions » Intrinsic Value: DCF (FCF Based)

Comparable Companies

Traded in Other Exchanges

N/A

Address

1500 Solana Boulevard, Suite 3400, Westlake, TX, USA, 76262

Website

https://www.core-mark.com

Core-Mark Holding Co Inc is a wholesale distributor to the convenience retail industry in North America, providing sales, marketing, distribution, and logistics services to customers across the United States and Canada. The company offers customers a wide range of branded and private label products including cigarettes, food, candy, health and beauty products, and beverages. Geographically, it generates a majority of its revenue from the United States.

Executives

Christopher M Miller	officer: Senior VP & CFO	200 FOURTH ST OAKLAND CA 94607
Scott E Mcpherson	director, officer: President and CEO	395 OYSTER POINT BLVD, SUITE 415, SAN FRANCISCO CA 94080
Alan T Thomas	officer: SVP, Western Divisions	395 OYSTER POINT BLVD SUITE 415 SOUTH SAN FRANCISCO CA 94080
Jennifer Hulett	officer: Senior VP and Chief HR Officer	1500 SOLANA BLVD., SUITE 3400, WESTLAKE TX 76262
Christopher M Murray	officer: SVP - Marketing	1500 SOLANA BLVD SUITE 3400 WESTLAKE TX 76262
Diane Randolph	director	1500 SOLANA BLVD, SUITE 3400, WESTLAKE TX 76262
Stuart W Booth	director	C/O CENTRAL GARDEN & PET CO, 3697 MT DIABLO BLVD STE 310, LAFAYETTE CA 94549
David Jackson Lawrence	officer: VP - Treasury & IR	1500 SOLANA BLVD BUILDING 3, SUITE 3400 WESTLAKE TX 76262
Jordana Daryl Kammerud	officer: Senior VP and Chief HR Officer	ONE RIVERFRONT PLAZA, CORNING NY 14831
Laura Jean Flanagan	director	395 OYSTER POINT BLVD, SUITE 415, SOUTH SAN FRANCISCO CA 94080
Christopher Hobson	officer: Senior VP US Distribution East	395 OYSTER POINT BLVD. SOUTH SAN FRANCISCO CA 94080
William Stein	officer: Senior VP Enterprise Growth	395 OYSTER POINT BLVD SOUTH SAN FRANCISCO CA 94080
Eric Rolheiser	officer: President - Canada Operations	395 OYSTER POINT BLVD. SUITE 415 SOUTH SAN FRANCISCO CA 94080
Rocky Dewbre	director	46 FLORHAM PARK DR., SPRING TX 77379
Harvey L Tepner	director	395 OYSTER POINT BLVD., SUITE 415, SAN FRANCISCO CA 94080