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Saudi Steel Pipe Co (SAU:1320) Intrinsic Value: Projected FCF : ﷼26.74 (As of May. 25, 2024)


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What is Saudi Steel Pipe Co 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 (2024-05-25), Saudi Steel Pipe Co's Intrinsic Value: Projected FCF is ﷼26.74. The stock price of Saudi Steel Pipe Co is ﷼72.50. Therefore, Saudi Steel Pipe Co's Price-to-Intrinsic-Value-Projected-FCF of today is 2.7.

The historical rank and industry rank for Saudi Steel Pipe Co's Intrinsic Value: Projected FCF or its related term are showing as below:

SAU:1320' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.07   Med: 1.85   Max: 3.69
Current: 2.71

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Saudi Steel Pipe Co was 3.69. The lowest was 1.07. And the median was 1.85.

SAU:1320's Price-to-Projected-FCF is ranked worse than
86.29% of 474 companies
in the Steel industry
Industry Median: 0.71 vs SAU:1320: 2.71

Saudi Steel Pipe Co Intrinsic Value: Projected FCF Historical Data

The historical data trend for Saudi Steel Pipe Co'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.

Saudi Steel Pipe Co Intrinsic Value: Projected FCF Chart

Saudi Steel Pipe Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.48 15.82 13.44 13.59 25.24

Saudi Steel Pipe Co 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 13.56 15.88 15.63 25.24 26.74

Competitive Comparison of Saudi Steel Pipe Co's Intrinsic Value: Projected FCF

For the Steel subindustry, Saudi Steel Pipe Co'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.


Saudi Steel Pipe Co's Price-to-Projected-FCF Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Saudi Steel Pipe Co's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Saudi Steel Pipe Co's Price-to-Projected-FCF falls into.



Saudi Steel Pipe Co 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 Saudi Steel Pipe Co's Free Cash Flow(6 year avg) = ﷼56.44.

Saudi Steel Pipe Co'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)
=(13.137944322724*56.44256+777.979*0.8)/51.000
=26.74

* 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.


Saudi Steel Pipe Co  (SAU:1320) 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.

Saudi Steel Pipe Co's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=72.50/26.743576680628
=2.71

* 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.


Saudi Steel Pipe Co Intrinsic Value: Projected FCF Related Terms

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Saudi Steel Pipe Co (SAU:1320) Business Description

Industry
Traded in Other Exchanges
N/A
Address
P.O.Box 11680, Dammam, SAU, 31326
Saudi Steel Pipe Co is a Saudi Arabian company engaged in the manufacturing of steel pipes. The group operates in two segments, being the Process equipment segment which includes the design, manufacture, assemble, maintain, and market of heavy process equipment for the utilization of oil and gas, power generation, desalination, mining, solar energy, and off-shore plants, and Steel pipes segment which provides galvanized and non-galvanized steel pipes, square and rectangular pipes used in petroleum, gas, water, and construction sectors. It derives the majority of its revenue from the Steel pipes segment. The company has a market presence with the majority of the revenue generated from Saudi Arabia.

Saudi Steel Pipe Co (SAU:1320) Headlines

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