Intrinsic value of Chicken Soup for the Soul Entertainment - CSSE

Previous Close

$10.53

  Intrinsic Value

$80.41

stock screener

  Rating & Target

str. buy

+664%

Previous close

$10.53

 
Intrinsic value

$80.41

 
Up/down potential

+664%

 
Rating

str. buy

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of CSSE stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  300.00
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  8
  13
  20
  30
  43
  61
  83
  112
  147
  189
  238
  296
  362
  436
  519
  610
  710
  818
  934
  1,058
  1,189
  1,328
  1,474
  1,628
  1,789
  1,957
  2,132
  2,314
  2,504
  2,701
  2,906
Variable operating expenses, $m
 
  8
  12
  18
  27
  38
  52
  70
  92
  118
  149
  185
  226
  273
  324
  381
  444
  511
  584
  661
  743
  830
  921
  1,017
  1,118
  1,223
  1,332
  1,446
  1,565
  1,688
  1,816
Fixed operating expenses, $m
 
  1
  1
  1
  1
  1
  1
  1
  1
  1
  1
  1
  1
  1
  1
  1
  1
  2
  2
  2
  2
  2
  2
  2
  2
  2
  2
  2
  2
  2
  2
Total operating expenses, $m
  6
  9
  13
  19
  28
  39
  53
  71
  93
  119
  150
  186
  227
  274
  325
  382
  445
  513
  586
  663
  745
  832
  923
  1,019
  1,120
  1,225
  1,334
  1,448
  1,567
  1,690
  1,818
Operating income, $m
  2
  4
  6
  10
  15
  22
  30
  41
  54
  70
  88
  110
  134
  162
  193
  227
  265
  305
  349
  395
  444
  496
  551
  609
  669
  732
  797
  866
  937
  1,011
  1,088
EBITDA, $m
  2
  4
  7
  11
  16
  23
  33
  44
  58
  75
  96
  119
  146
  176
  210
  247
  287
  331
  378
  428
  481
  538
  597
  660
  725
  793
  864
  938
  1,015
  1,095
  1,179
Interest expense (income), $m
  0
  0
  0
  1
  1
  1
  2
  3
  4
  5
  7
  8
  10
  13
  15
  18
  21
  25
  29
  33
  37
  42
  46
  52
  57
  63
  68
  75
  81
  88
  94
Earnings before tax, $m
  1
  4
  6
  9
  14
  20
  28
  38
  50
  64
  82
  101
  124
  150
  178
  209
  243
  280
  320
  362
  407
  455
  505
  557
  612
  669
  729
  791
  856
  923
  993
Tax expense, $m
  0
  1
  2
  3
  4
  5
  8
  10
  13
  17
  22
  27
  34
  40
  48
  57
  66
  76
  86
  98
  110
  123
  136
  150
  165
  181
  197
  214
  231
  249
  268
Net income, $m
  1
  3
  4
  7
  10
  15
  20
  28
  36
  47
  60
  74
  91
  109
  130
  153
  178
  205
  234
  265
  297
  332
  368
  407
  447
  489
  532
  578
  625
  674
  725

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  12
  18
  27
  41
  59
  83
  114
  154
  202
  260
  328
  407
  498
  600
  714
  840
  977
  1,125
  1,284
  1,455
  1,636
  1,827
  2,028
  2,239
  2,460
  2,691
  2,932
  3,183
  3,444
  3,715
  3,997
Adjusted assets (=assets-cash), $m
  11
  18
  27
  41
  59
  83
  114
  154
  202
  260
  328
  407
  498
  600
  714
  840
  977
  1,125
  1,284
  1,455
  1,636
  1,827
  2,028
  2,239
  2,460
  2,691
  2,932
  3,183
  3,444
  3,715
  3,997
Revenue / Adjusted assets
  0.727
  0.722
  0.741
  0.732
  0.729
  0.735
  0.728
  0.727
  0.728
  0.727
  0.726
  0.727
  0.727
  0.727
  0.727
  0.726
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
  0.727
Average production assets, $m
  3
  4
  6
  9
  13
  19
  26
  35
  46
  59
  75
  93
  113
  137
  162
  191
  222
  256
  292
  331
  372
  416
  461
  510
  560
  612
  667
  724
  784
  845
  910
Working capital, $m
  0
  -2
  -2
  -4
  -5
  -8
  -10
  -14
  -18
  -24
  -30
  -37
  -45
  -55
  -65
  -76
  -89
  -102
  -117
  -132
  -149
  -166
  -184
  -203
  -224
  -245
  -266
  -289
  -313
  -338
  -363
Total debt, $m
  6
  11
  18
  28
  41
  59
  81
  110
  145
  187
  236
  294
  360
  434
  517
  608
  708
  816
  932
  1,056
  1,187
  1,326
  1,472
  1,626
  1,787
  1,955
  2,130
  2,312
  2,502
  2,699
  2,904
Total liabilities, $m
  8
  13
  20
  30
  43
  61
  83
  112
  147
  189
  238
  296
  362
  436
  519
  610
  710
  818
  934
  1,058
  1,189
  1,328
  1,474
  1,628
  1,789
  1,957
  2,132
  2,314
  2,504
  2,701
  2,906
Total equity, $m
  4
  5
  7
  11
  16
  23
  31
  42
  55
  71
  90
  111
  136
  164
  195
  229
  267
  307
  351
  397
  446
  499
  554
  611
  672
  735
  800
  869
  940
  1,014
  1,091
Total liabilities and equity, $m
  12
  18
  27
  41
  59
  84
  114
  154
  202
  260
  328
  407
  498
  600
  714
  839
  977
  1,125
  1,285
  1,455
  1,635
  1,827
  2,028
  2,239
  2,461
  2,692
  2,932
  3,183
  3,444
  3,715
  3,997
Debt-to-equity ratio
  1.500
  2.250
  2.390
  2.480
  2.540
  2.580
  2.600
  2.620
  2.630
  2.630
  2.640
  2.650
  2.650
  2.650
  2.650
  2.650
  2.660
  2.660
  2.660
  2.660
  2.660
  2.660
  2.660
  2.660
  2.660
  2.660
  2.660
  2.660
  2.660
  2.660
  2.660
Adjusted equity ratio
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273
  0.273

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1
  3
  4
  7
  10
  15
  20
  28
  36
  47
  60
  74
  91
  109
  130
  153
  178
  205
  234
  265
  297
  332
  368
  407
  447
  489
  532
  578
  625
  674
  725
Depreciation, amort., depletion, $m
  0
  0
  1
  1
  1
  2
  3
  3
  5
  6
  7
  9
  11
  14
  16
  19
  22
  26
  29
  33
  37
  42
  46
  51
  56
  61
  67
  72
  78
  85
  91
Funds from operations, $m
  -11
  3
  5
  8
  12
  17
  23
  31
  41
  53
  67
  83
  102
  123
  146
  172
  200
  230
  263
  298
  335
  374
  415
  458
  503
  550
  599
  650
  703
  758
  816
Change in working capital, $m
  -9
  -1
  -1
  -1
  -2
  -2
  -3
  -4
  -4
  -5
  -6
  -7
  -8
  -9
  -10
  -11
  -12
  -13
  -14
  -15
  -16
  -17
  -18
  -19
  -20
  -21
  -22
  -23
  -24
  -25
  -26
Cash from operations, $m
  -2
  4
  6
  9
  13
  19
  26
  35
  45
  58
  73
  91
  110
  132
  157
  183
  212
  244
  277
  313
  351
  391
  433
  477
  523
  571
  621
  673
  727
  783
  842
Maintenance CAPEX, $m
  0
  0
  0
  -1
  -1
  -1
  -2
  -3
  -3
  -5
  -6
  -7
  -9
  -11
  -14
  -16
  -19
  -22
  -26
  -29
  -33
  -37
  -42
  -46
  -51
  -56
  -61
  -67
  -72
  -78
  -85
New CAPEX, $m
  -5
  -2
  -2
  -3
  -4
  -6
  -7
  -9
  -11
  -13
  -16
  -18
  -21
  -23
  -26
  -29
  -31
  -34
  -36
  -39
  -41
  -43
  -46
  -48
  -50
  -53
  -55
  -57
  -59
  -62
  -64
Cash from investing activities, $m
  -5
  -2
  -2
  -4
  -5
  -7
  -9
  -12
  -14
  -18
  -22
  -25
  -30
  -34
  -40
  -45
  -50
  -56
  -62
  -68
  -74
  -80
  -88
  -94
  -101
  -109
  -116
  -124
  -131
  -140
  -149
Free cash flow, $m
  -7
  2
  3
  5
  8
  12
  17
  23
  31
  40
  52
  65
  80
  98
  117
  139
  162
  188
  215
  245
  277
  310
  346
  383
  422
  462
  505
  549
  595
  643
  693
Issuance/(repayment) of debt, $m
  6
  5
  7
  10
  13
  18
  23
  28
  35
  42
  50
  58
  66
  74
  83
  91
  100
  108
  116
  124
  131
  139
  146
  154
  161
  168
  175
  182
  190
  197
  205
Issuance/(repurchase) of shares, $m
  1
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  8
  5
  7
  10
  13
  18
  23
  28
  35
  42
  50
  58
  66
  74
  83
  91
  100
  108
  116
  124
  131
  139
  146
  154
  161
  168
  175
  182
  190
  197
  205
Total cash flow (excl. dividends), $m
  1
  7
  10
  15
  21
  30
  40
  52
  66
  83
  101
  123
  146
  172
  200
  230
  262
  296
  331
  369
  408
  449
  492
  536
  582
  630
  680
  731
  785
  840
  898
Retained Cash Flow (-), $m
  -4
  -2
  -3
  -4
  -5
  -7
  -9
  -11
  -13
  -16
  -19
  -22
  -25
  -28
  -31
  -34
  -37
  -41
  -44
  -46
  -49
  -52
  -55
  -58
  -60
  -63
  -66
  -68
  -71
  -74
  -77
Prev. year cash balance distribution, $m
 
  1
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  6
  8
  11
  16
  23
  31
  41
  53
  67
  83
  101
  121
  144
  169
  196
  224
  255
  288
  322
  359
  397
  437
  479
  522
  567
  614
  663
  714
  766
  821
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  6
  7
  10
  14
  18
  23
  28
  33
  38
  43
  48
  52
  55
  57
  57
  57
  56
  53
  50
  46
  41
  36
  31
  27
  22
  18
  14
  11
  8
  6
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Chicken Soup for the Soul Entertainment, Inc. is a provider of entertaining video content. The Company develops and produces and entertaining, video content packaged for distribution through television, online and mobile channels, including: The Sip, Web series run on APlus.com, and A Plus videos. The Company’s video content projects include Chicken Soup for the Soul’s Hidden Heroes (Hidden Heroes), Chicken Soup for the Soul’s Project Dad, Paycation Homes, Hilton Grand Vacation Sips, Emily Griffith Technical College Sips, and American Humane.


Warning: Division by zero in /home3/webhub/public_html/x-fin.com/stocks/a-inc/ratios.php on line 11

Warning: Division by zero in /home3/webhub/public_html/x-fin.com/stocks/a-inc/ratios.php on line 13

Warning: Division by zero in /home3/webhub/public_html/x-fin.com/stocks/a-inc/ratios.php on line 13

Warning: Division by zero in /home3/webhub/public_html/x-fin.com/stocks/a-inc/ratios.php on line 28

Warning: Division by zero in /home3/webhub/public_html/x-fin.com/stocks/a-inc/ratios.php on line 30

Warning: Division by zero in /home3/webhub/public_html/x-fin.com/stocks/a-inc/ratios.php on line 32

Warning: Division by zero in /home3/webhub/public_html/x-fin.com/stocks/a-inc/ratios.php on line 34

Warning: Division by zero in /home3/webhub/public_html/x-fin.com/stocks/a-inc/ratios.php on line 36

Warning: Division by zero in /home3/webhub/public_html/x-fin.com/stocks/a-inc/ratios.php on line 38

Warning: Division by zero in /home3/webhub/public_html/x-fin.com/stocks/a-inc/ratios.php on line 40

Warning: Division by zero in /home3/webhub/public_html/x-fin.com/stocks/a-inc/ratios.php on line 42

Warning: Division by zero in /home3/webhub/public_html/x-fin.com/stocks/a-inc/ratios.php on line 42

Warning: Division by zero in /home3/webhub/public_html/x-fin.com/stocks/a-inc/ratios.php on line 44

Warning: Division by zero in /home3/webhub/public_html/x-fin.com/stocks/a-inc/ratios.php on line 44

FINANCIAL RATIOS  of  Chicken Soup for the Soul Entertainment (CSSE)

Valuation Ratios
P/E Ratio 104.9
Price to Sales 13.1
Price to Book 26.2
Price to Tangible Book
Price to Cash Flow -52.4
Price to Free Cash Flow -15
Growth Rates
Sales Growth Rate 300%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 150%
Total Debt to Equity 150%
Interest Coverage 0
Management Effectiveness
Return On Assets 13.3%
Ret/ On Assets - 3 Yr. Avg. -17.8%
Return On Total Capital 20%
Ret/ On T. Cap. - 3 Yr. Avg. 6.7%
Return On Equity 50%
Return On Equity - 3 Yr. Avg. 16.7%
Asset Turnover 1.1
Profitability Ratios
Gross Margin 62.5%
Gross Margin - 3 Yr. Avg. 37.5%
EBITDA Margin 12.5%
EBITDA Margin - 3 Yr. Avg. -12.5%
Operating Margin 25%
Oper. Margin - 3 Yr. Avg. 8.3%
Pre-Tax Margin 12.5%
Pre-Tax Margin - 3 Yr. Avg. -12.5%
Net Profit Margin 12.5%
Net Profit Margin - 3 Yr. Avg. -12.5%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 0%

CSSE stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CSSE stock intrinsic value calculation we used $8 million for the last fiscal year's total revenue generated by Chicken Soup for the Soul Entertainment . The default revenue input number comes from 2016 income statement of Chicken Soup for the Soul Entertainment . You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our CSSE stock valuation model: a) initial revenue growth rate of 60% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for CSSE is calculated based on our internal credit rating of Chicken Soup for the Soul Entertainment , is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Chicken Soup for the Soul Entertainment .
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of CSSE stock the variable cost ratio is equal to 62.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1 million in the base year in the intrinsic value calculation for CSSE stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Chicken Soup for the Soul Entertainment .

Corporate tax rate of 27% is the nominal tax rate for Chicken Soup for the Soul Entertainment . In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the CSSE stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for CSSE are equal to 31.3%.

Life of production assets of 10 years is the average useful life of capital assets used in Chicken Soup for the Soul Entertainment operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for CSSE is equal to -12.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $4 million for Chicken Soup for the Soul Entertainment - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 12.146 million for Chicken Soup for the Soul Entertainment is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Chicken Soup for the Soul Entertainment at the current share price and the inputted number of shares is $0.1 billion.

COMPANY NEWS

▶ CSSE: Low Cost TV Programming Spurs Huge Demand From Networks   [Oct-03-17 02:30PM  Zacks Small Cap Research]
Financial statements of CSSE
Follow us on:   twitter   twitter   twitter   twitter

ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.