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Cheung Kong Holdings Ltd (OTCPK:CHEUY)
Intrinsic Value: Projected FCF
$20.16 (As of Today)

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, Cheung Kong Holdings Ltd's projected FCF intrinsic value is $20.16. The stock price of Cheung Kong Holdings Ltd is $21.81. Therefore, Cheung Kong Holdings Ltd's Price to Intrinsic Value: Projected FCF Ratio of today is 0.7.

CHEUY' s 10-Year Price to Intrinsic Value: Projected FCF Range
Min: 0.57   Max: 1.45
Current: 0.67

0.57
1.45

During the past 13 years, the highest Price to Intrinsic Value: Projected FCF Ratio of Cheung Kong Holdings Ltd was 1.45. The lowest was 0.57. And the median was 0.82.

CHEUY's Price to Intrinsic Value: Projected FCF is ranked higher than
72% of the 591 Companies
in the Global Real Estate - General industry.

( Industry Median: 1.19 vs. CHEUY: 0.67 )

Definition

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 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 Cheung Kong Holdings Ltd's FCF(6 year avg) is calculate as

Cheung Kong Holdings Ltd Annual Data

200912201012201112201212201312201412
total_freecashflow 1,6831,096-930-429894299

Add all the adjusted EPS together and divide 6 will get Cheung Kong Holdings Ltd's FCF(6 year avg) = $435.50.

Cheung Kong Holdings Ltd's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Dec14)*0.8)/Shares Outstanding
=(11.6932312435*435.504364479+51997.0080345*0.8)/2316.16
=20.16

* 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.

Cheung Kong Holdings Ltd's Price to Intrinsic Value: Projected FCF Ratio for today is calculated as

Price to Intrinsic Value: Projected FCF=Share Price/Intrinsic Value: Projected FCF
=21.81/20.1583913326
=1.08

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


Related Terms

Intrinsic Value: DCF (Earnings Based), Intrinsic Value: DCF (FCF Based), Free Cash Flow


Historical Data

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

Cheung Kong Holdings Ltd Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Projected FCF 8.787.569.118.469.7112.0513.2515.7118.3320.16

Cheung Kong Holdings Ltd Semi-Annual Data

Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13Jun14Dec14
Projected FCF 0.0012.050.0013.250.0015.710.0018.330.0020.16
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