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FAT Brands (FAT Brands) Intrinsic Value: Projected FCF : $-46.96 (As of Jun. 07, 2024)


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What is FAT Brands 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 (2024-06-07), FAT Brands's Intrinsic Value: Projected FCF is $-46.96. The stock price of FAT Brands is $5.71. Therefore, FAT Brands's Price-to-Intrinsic-Value-Projected-FCF of today is 0.0.

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

FAT's Price-to-Projected-FCF is not ranked *
in the Restaurants industry.
Industry Median: 1.29
* Ranked among companies with meaningful Price-to-Projected-FCF only.

FAT Brands Intrinsic Value: Projected FCF Historical Data

The historical data trend for FAT Brands'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.

FAT Brands Intrinsic Value: Projected FCF Chart

FAT Brands Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only - - - -19.99 -39.67

FAT Brands Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 -24.01 -26.05 -28.64 -39.67 -46.96

Competitive Comparison of FAT Brands's Intrinsic Value: Projected FCF

For the Restaurants subindustry, FAT Brands'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.


FAT Brands's Price-to-Projected-FCF Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, FAT Brands's Price-to-Projected-FCF distribution charts can be found below:

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



FAT Brands 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 FAT Brands's Free Cash Flow(6 year avg) = $-28.58.

FAT Brands'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 (Mar24)/0.8)/Shares Outstanding (Diluted Average)
=(14.862653310476*-28.58464+-296.766/0.8)/16.947
=-46.96

* 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.


FAT Brands  (NAS:FAT) 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.

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

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=5.71/-46.95822826015
=

* 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.


FAT Brands Intrinsic Value: Projected FCF Related Terms

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


FAT Brands (FAT Brands) Business Description

Industry
Traded in Other Exchanges
Address
9720 Wilshire Boulevard, Suite 500, Beverly Hills, CA, USA, 90212
FAT Brands Inc is a multi-brand restaurant franchising company. It develops, markets, acquires and manages quick service, fast casual, casual dining and polished casual dining restaurant concepts around the world. The company operates as a franchisor of restaurants, where the company generally does not own or operate the restaurant locations but rather generates revenue by charging franchisees an initial franchise fee as well as ongoing royalties. For some of the company's brands, it also directly owns and operates restaurant locations. The primary sources of revenue are the sale of food and beverages at company restaurants and the collection of royalties, franchise fees and advertising revenue from sales of food and beverages at franchised restaurants.
Executives
Andrew Wiederhorn director, officer: Chief Executive Officer C/O WILSHIRE FINANCIAL SERVICES INC, 1776 SW MADISON STREET, PORTLAND OR 97205
John Stephen Allen director P.O. BOX 2732, GEARHART OR 97138
James G Ellis director C/O QUIKSILVER, INC., 15202 GRAHAM STREET, HUNTINGTON BEACH CA 92649
Fog Cutter Holdings, Llc 10 percent owner 9720 WILSHIRE BLVD, SUITE 500, BEVERLY HILLS CA 90212
Matthew Green director
Peter R Feinstein director
John Cameron Metz director 13153 FABERGE PLACE, PALM BEACH GARDENS FL 33418
Kenneth Kepp director 27929 SW 95TH AVENUE, SUITE 1101, WILSONVILLE OR 97070
Mark Elenowitz director 400 PROFESSIONAL DRIVE, SUITE 310, GAITHERSBURG MD 20879
Tyler Berchtold Child director P.O. BOX 254, ROSS CA 94957
Vidal Paba Maria Carmen director CARRER CAVALLERS NUMBER 56-58, 4TH FLOOR 1ST DOOR, BARCELONA U3 08034
Mason Alan Wiederhorn director 9720 WILSHIRE BLVD., PH, BEVERLY HILLS CA 90212
Lynne Leigh Collier director 8523 FOREST HILLS BLVD, DALLAS TX 75218
John Squire Junger director 16600 PARK LANE CIRCLE, LOS ANGELES CA 90049
Taylor Andrew Wiederhorn officer: Chief Development Officer 9720 WILSHIRE BLVD,, SUITE 500, BEVERLY HILLS CA 90212