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Australia and New Zealand Banking Group Ltd (OTCPK:ANZBY)
Intrinsic Value (DCF Projected)
$39.32 (As of Today)

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value (DCF), or Discounted Earnings (DCE) Intrinsic Value (DE) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Discounted 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, Australia and New Zealand Banking Group Ltd's DCF projected intrinsic value is $39.32. The stock price of Australia and New Zealand Banking Group Ltd is $29.52. Therefore, Australia and New Zealand Banking Group Ltd's Price to Intrinsic Value (DCF Projected) Ratio of today is 0.8.

ANZBY' s 10-Year Price to Intrinsic Value (DCF Projected) Range
Min: 0.61   Max: 5.79
Current: 0.79

0.61
5.79

During the past 13 years, the highest Price to Intrinsic Value (DCF Projected) Ratio of Australia and New Zealand Banking Group Ltd was 5.79. The lowest was 0.61. And the median was 0.97.

ANZBY's Price to Intrinsic Value (DCF Projected) is ranked higher than
75% of the 1931 Companies
in the Global Banks - Regional - Australia industry.

( Industry Median: 1.18 vs. ANZBY: 0.79 )

Definition

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value (DCF), or Discounted Earnings (DCE) Intrinsic Value (DE) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Discounted 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 equity.

Value = ((Growth Multiple)*Free Cash Flow(6 year avg) + 0.8*Total Equity(most recent))/Shares Outstanding

In the case of negative total equity, the following formula is used (see the Total Equity section for the reason):

Value = ((Growth Multiple)*Free Cash Flow(6 year avg) + Total Equity(most recent)/0.8)/Shares Outstanding


Here Australia and New Zealand Banking Group Ltd's FCF(6 year avg) is calculate as

Australia and New Zealand Banking Group Ltd Annual Data

200909201009201109201209201309201409
total_freecashflow -3,9812,68418,8026,27916,4294,621

Add all the adjusted EPS together and divide 6 will get Australia and New Zealand Banking Group Ltd's FCF(6 year avg) = $7,472.24.

Australia and New Zealand Banking Group Ltd's DCF Projected Intrinsic Value for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Sep14)*0.8)/Shares Outstanding
=(10.265723347*7472.23501138+43126.2050833*0.8)/2829.183
=39.31

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

The growth multiple is capped between 8.35 and 17.74.

Total 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 medium after taking the above ideas into consideration. Learn more here.

Australia and New Zealand Banking Group Ltd's Price to DCF Projected Intrinsic Value Ratio for today is calculated as

Price to DCF Projected Intrinsic Value=Share Price/DCF Projected Intrinsic Value
=29.52/39.3077653433
=0.75

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Intrinsic Value (DE), Intrinsic Value (DCF), Free Cash Flow


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Australia and New Zealand Banking Group Ltd Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
iv_dcf_share 20.2213.229.046.333.943.9617.8625.7044.7239.32

Australia and New Zealand Banking Group Ltd Semi-Annual Data

Mar10Sep10Mar11Sep11Mar12Sep12Mar13Sep13Mar14Sep14
iv_dcf_share 0.003.960.0017.860.0025.700.0044.720.0039.32
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