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Verra Mobility (Verra Mobility) Intrinsic Value: Projected FCF : $8.30 (As of May. 12, 2024)


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What is Verra Mobility 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 (2024-05-12), Verra Mobility's Intrinsic Value: Projected FCF is $8.30. The stock price of Verra Mobility is $26.91. Therefore, Verra Mobility's Price-to-Intrinsic-Value-Projected-FCF of today is 3.2.

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

VRRM' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 2.2   Med: 2.49   Max: 3.24
Current: 3.24

During the past 8 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Verra Mobility was 3.24. The lowest was 2.20. And the median was 2.49.

VRRM's Price-to-Projected-FCF is ranked worse than
88.13% of 1146 companies
in the Construction industry
Industry Median: 0.925 vs VRRM: 3.24

Verra Mobility Intrinsic Value: Projected FCF Historical Data

The historical data trend for Verra Mobility'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.

Verra Mobility Intrinsic Value: Projected FCF Chart

Verra Mobility Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial - - - 6.28 7.99

Verra Mobility 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 6.65 8.37 7.71 7.99 8.30

Competitive Comparison of Verra Mobility's Intrinsic Value: Projected FCF

For the Infrastructure Operations subindustry, Verra Mobility'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.


Verra Mobility's Price-to-Projected-FCF Distribution in the Construction Industry

For the Construction industry and Industrials sector, Verra Mobility's Price-to-Projected-FCF distribution charts can be found below:

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



Verra Mobility 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 Verra Mobility's Free Cash Flow(6 year avg) = $109.28.

Verra Mobility'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)
=(9.5203515959648*109.28272+448.995*0.8)/168.726
=8.30

* 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.


Verra Mobility  (NAS:VRRM) 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.

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

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=26.91/8.2951407475041
=3.24

* 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.


Verra Mobility Intrinsic Value: Projected FCF Related Terms

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


Verra Mobility (Verra Mobility) Business Description

Industry
Traded in Other Exchanges
Address
1150 North Alma School Road, Mesa, AZ, USA, 85201
Verra Mobility Corp provides smart transportation solutions. The company develops and uses technology and data intelligence to help make transportation safer and easier. It operates in three segments namely Commercial Services, Government Solutions, and Parking Solutions. It generates maximum revenue from the Commercial Services segment. The commercial Services segment delivers tolling and violation management services to rental car companies, commercial fleet vehicle owners, and violation issuing authorities.
Executives
Craig C Conti officer: EVP 1 S. WACKER DR., SUITE 1000, CHICAGO IL 60606
Steve Lalla officer: EVP Commercial Services C/O VERTIV HOLDINGS CO, 1050 DEARBORN DRIVE, COLUMBUS OH 43085
David Martin Roberts director, officer: President and CEO 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201
Jonathan Keyser other: Chief Legal Officer 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201
Jonathan Baldwin officer: EVP-Government Solutions 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201
Sarah E Farrell director 572 RUGER STREET, SUITE B, SAN FRANCISCO CA 94129
Platinum Equity Llc director, 10 percent owner 360 NORTH CRESCENT DRIVE, BEVERLY HILLS CA 90210
Blake Norman P Iii officer: Pres. T2 Systems 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201
Patricia Chiodo officer: Chief Financial Officer 5227 EAST GLORIA LANE, CAVE CREEK AZ 85331
Rebecca Collins officer: General Counsel 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201
Mark J. Talbot officer: EVP Government Solutions 1150 NORTH ALMA SCHOOL ROAD, MESA AZ 85201
Michael P Huerta director 1800 M STREET NW SUITE 800, WASHINGTON DC 20036
Patrick J Byrne director 395 PAGE MILL ROAD, MS A3-18, PALO ALTO CA 94306
Garrett Fristoe Miller officer: Executive Vice President 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201
Vincent Brigidi officer: Exec. VP 1150 N. ALMA SCHOOL ROAD, MESA AZ 85201