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The Hongkong and Shanghai Hotels (FRA:HSG) Intrinsic Value: Projected FCF : €1.59 (As of Apr. 28, 2024)


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What is The Hongkong and Shanghai Hotels 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 (2024-04-28), The Hongkong and Shanghai Hotels's Intrinsic Value: Projected FCF is €1.59. The stock price of The Hongkong and Shanghai Hotels is €0.73. Therefore, The Hongkong and Shanghai Hotels's Price-to-Intrinsic-Value-Projected-FCF of today is 0.5.

The historical rank and industry rank for The Hongkong and Shanghai Hotels's Intrinsic Value: Projected FCF or its related term are showing as below:

FRA:HSG' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.43   Med: 0.5   Max: 0.7
Current: 0.46

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of The Hongkong and Shanghai Hotels was 0.70. The lowest was 0.43. And the median was 0.50.

FRA:HSG's Price-to-Projected-FCF is ranked better than
85.08% of 563 companies
in the Travel & Leisure industry
Industry Median: 1.2 vs FRA:HSG: 0.46

The Hongkong and Shanghai Hotels Intrinsic Value: Projected FCF Historical Data

The historical data trend for The Hongkong and Shanghai Hotels'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.

The Hongkong and Shanghai Hotels Intrinsic Value: Projected FCF Chart

The Hongkong and Shanghai Hotels 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 1.99 1.64 1.50 1.37 1.55

The Hongkong and Shanghai Hotels Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 1.50 - 1.37 - 1.55

Competitive Comparison of The Hongkong and Shanghai Hotels's Intrinsic Value: Projected FCF

For the Lodging subindustry, The Hongkong and Shanghai Hotels'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.


The Hongkong and Shanghai Hotels's Price-to-Projected-FCF Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, The Hongkong and Shanghai Hotels's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where The Hongkong and Shanghai Hotels's Price-to-Projected-FCF falls into.



The Hongkong and Shanghai Hotels 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 The Hongkong and Shanghai Hotels's Free Cash Flow(6 year avg) = €-75.62.

The Hongkong and Shanghai Hotels'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 (Dec23)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*-75.622428571429+4259.756*0.8)/1649.000
=1.63

* 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.


The Hongkong and Shanghai Hotels  (FRA:HSG) 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.

The Hongkong and Shanghai Hotels's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=0.73/1.6299895036139
=0.45

* 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.


The Hongkong and Shanghai Hotels Intrinsic Value: Projected FCF Related Terms

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The Hongkong and Shanghai Hotels (FRA:HSG) Business Description

Traded in Other Exchanges
Address
2 Ice House Street, 8th Floor, St. George’s Building, Central, Hong Kong, HKG
The Hongkong and Shanghai Hotels Ltd is a hotel owner and operator, domiciled in Hong Kong. The company organises itself into three segments: hotels, commercial properties, and clubs and services. The hotel's segment, which contributes the vast majority of consolidated revenue, includes the company's hotel operations under The Peninsula brand in major cities across the globe, the most significant of which is The Peninsula Hong Kong. The commercial properties segment leases office buildings, residential apartments and retail spaces. Clubs and services operate golf courses, wholesales food, and provides laundry services. Geographically, domestic operations are the most significant contributor to company revenue, followed by Other Asia, and the U.S. and Europe.

The Hongkong and Shanghai Hotels (FRA:HSG) Headlines

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