Switch to:
Li & Fung Ltd (OTCPK:LFUGF)
Intrinsic Value: Projected FCF
$0.93 (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, Li & Fung Ltd's projected FCF intrinsic value is $0.93. The stock price of Li & Fung Ltd is $0.45. Therefore, Li & Fung Ltd's Price to Intrinsic Value: Projected FCF Ratio of today is 0.5.

LFUGF' s Price to Intrinsic Value: Projected FCF Range Over the Past 10 Years
Min: 0   Max: 36.4
Current: 0.48

0
36.4

During the past 13 years, the highest Price to Intrinsic Value: Projected FCF Ratio of Li & Fung Ltd was 36.40. The lowest was 0.00. And the median was 1.85.

LFUGF's Price to Intrinsic Value: Projected FCF is ranked lower than
99.99% of the 349 Companies
in the Global Business Services industry.

( Industry Median: 1.35 vs. LFUGF: 0.48 )

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 Li & Fung Ltd's FCF(6 year avg) is calculate as

Li & Fung Ltd Annual Data

201012201112201212201312201412201512
total_freecashflow 663806398787552461

Add all the adjusted EPS together and divide 6 will get Li & Fung Ltd's FCF(6 year avg) = $610.98.

Li & Fung 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*610.981833333+2502.873*0.8)/8351.640
=0.94

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Li & Fung 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
=0.45/0.93623052144
=0.48

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Li & Fung Ltd Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Projected FCF 0.380.530.671.121.501.601.721.720.990.92

Li & Fung Ltd Semi-Annual Data

Dec11Jun12Dec12Jun13Dec13Jun14Dec14Jun15Dec15Jun16
Projected FCF 1.600.001.720.001.720.000.990.000.920.00
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK