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Cheung Kong Holdings Ltd (OTCPK:CHEUY)
Intrinsic Value: Projected FCF
\$29.45 (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 \$29.45. 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 0.0.

During the past 13 years, the highest Price to Intrinsic Value: Projected FCF Ratio of Cheung Kong Holdings Ltd was 1.51. The lowest was 0.00. And the median was 0.83.

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

 201012 201112 201212 201312 201412 201512 total_freecashflow 1,096 -930 -429 894 3,862 2,460

Add all the adjusted EPS together and divide 6 will get Cheung Kong Holdings Ltd's FCF(6 year avg) = \$1,158.92.

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(Dec15) * 0.8) / Shares Outstanding = (9.52035159596 * 1158.9176311 + 55296.6828803 * 0.8) / 2316.16 = 23.86

* 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 / 23.8630533396 = 0.91

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

Related Terms

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

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Projected FCF 10.81 12.12 10.75 12.84 17.05 18.00 22.71 25.68 30.89 0.00

Cheung Kong Holdings Ltd Semi-Annual Data

 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Projected FCF 18.00 0.00 22.71 0.00 25.68 0.00 30.89 0.00 0.00 0.00
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