Whole Foods Hammered Today (Tue Aug 1) – Down Almost 12% on Heavy Volume

Whole Foods (NASDAQ: WFMI) was down $6.76, or 11.75%, today on extremely heavy volume – 16 million of the 140.712 million outstanding shares amounting to 11.4% of the company changed hands today.  That knocked another $500 million off the company’s market value from when I was writing my post on it after the close last night.

That puts Whole Foods enterprise value at about $7 billion.  Using the $368 million in free cash flow that I estimated last night for fiscal 2006 (ending late September, early October) that gives Whole Foods an enterprise value to free cash flow ratio of 19.1 for fiscal 2006.  If it can grow free cash flows by 20% in fiscal 2007 that would be $442 million for a forward enterprise value to free cash flow ratio of 15.9. 

I think its a screaming buy at this price. 

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