Aussie Broadband (ASX:ABB) Intrinsic Value: DCF (FCF Based): A$1.00 (As of Aug. 18, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ASX:ABB Aussie Broadband Ltd ASX:ABB
53 GF Score
Price A$4.92
GF Value A$4.84
Valuation Fairly Valued
! 3 Warning Signs
View Full Analysis

What is Aussie Broadband Intrinsic Value: DCF (FCF Based)?

Aussie Broadband ASX:ABB -1.20% 53 Intrinsic Value: DCF (FCF Based) is A$1.00 as of Aug. 18, 2026. GuruFocus rates ASX:ABB with a GF Score™ of 53/100 and a GF Value™ of A$4.84 (Fairly Valued). The stock has 3 warning signs investors should review. Among 54 Telecommunication Services companies, Aussie Broadband ranks worse than 1851850% on this metric.

As of today (2026-08-18), Aussie Broadband's intrinsic value calculated from the Discounted Cash Flow model is A$1.00.

Note: Discounted Cash Flow model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's predictability rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

Aussie Broadband's Predictability Rank is Not Rated. Thus, this page is only used for demonstration purposes and the DCF related results in the screener and portfolio will appear as zero.

Margin of Safety (FCF Based) using Discounted Cash Flow model for Aussie Broadband is -392.00%.

The industry rank for Aussie Broadband's Intrinsic Value: DCF (FCF Based) or its related term are showing as below:

ASX:ABB's Price-to-DCF (FCF Based) is not ranked *
in the Telecommunication Services industry.
Industry Median: 0.62
* Ranked among companies with meaningful Price-to-DCF (FCF Based) only.

Aussie Broadband  (ASX:ABB) Intrinsic Value: DCF (FCF Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Cash Flow model evaluates the companies based on their future earnings power instead of their assets.


Be Aware

What you need to know about the DCF model:

1. The DCF model evaluates a company based on its future earnings power
2. Growth is taken into account; therefore a faster growth company is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies that have relatively consistent performance.
4. The DCF model works poorly for inconsistent performers such as cyclicals.
5. What discount rate should you use? Your expected return from the investment is a good discount rate assumption.
6. A larger margin of safety should be required for companies with less predictable businesses.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.


Aussie Broadband Intrinsic Value: DCF (FCF Based) Related Terms


Aussie Broadband Intrinsic Value: DCF (FCF Based) Historical Data

* Premium members only.

The historical data trend for Aussie Broadband's Intrinsic Value: DCF (FCF Based) 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.

Aussie Broadband Intrinsic Value: DCF (FCF Based) Chart

Aussie Broadband Annual Data
Trend Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Intrinsic Value: DCF (FCF Based)
Get a 7-Day Free Trial 0.00 0.00 0.00 0.00 0.00

Aussie Broadband Semi-Annual Data
Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Intrinsic Value: DCF (FCF Based) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 0.00

ASX:ABB vs VZ, TMUS, T: Intrinsic Value: DCF (FCF Based) Comparison

For the Telecom Services subindustry, Aussie Broadband's Price-to-DCF (FCF Based), along with its competitors' market caps and Price-to-DCF (FCF Based) 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.


Aussie Broadband Price-to-DCF (FCF Based) vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Aussie Broadband's Price-to-DCF (FCF Based) distribution charts can be found below:

* The bar in red indicates where Aussie Broadband's Price-to-DCF (FCF Based) falls into.


ASX:ABB
53GF Score
Aussie Broadband Ltd ASX:ABB
Intrinsic Value: DCF (FCF Based) is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Aussie Broadband Intrinsic Value: DCF (FCF Based) Calculation

This is the intrinsic value calculated from the Discounted Cash Flow model with default parameters. In a discounted cash flow model, the future cash flow is estimated based on a cash flow growth rate and a discount rate. The cash flow of the future is discounted to its current value at the discount rate. All of the discounted future cash flow is added together to get the current intrinsic value of the company.

Usually a two-stage model is used when calculating a stock's intrinsic value using a discounted cash flow model. The first stage is called the growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DCF calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.83%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Growth Rate in the growth stage: g1 = 5%
The Growth Rate in the growth stage is initially set as the default 10-Year FCF Growth Rate (Per Share). In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year FCF Growth Rate (Per Share). If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year FCF Growth Rate (Per Share).
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=> Aussie Broadband's average Free Cash Flow Growth Rate in the past 3 years was -12.60%, which is less than 5%. GuruFocus defaults => Growth Rate: 5%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Years of Terminal Growth: y2 = 10

6. Free Cash Flow per Share: fcf = A$0.087.
However, GuruFocus DCF calculator is actually a Discounted Earnings calculator, the EPS without NRI is used as the default. The reason we are doing this is we found that historically stock prices are more correlated with earnings than free cash flow.

All of the default settings can be changed and the results are calculated automatically.

Aussie Broadband's Intrinsic Value: DCF (FCF Based) for today is calculated as

Intrinsic Value: DCF (FCF Based)=Free Cash Flow per Share*{[(1+g1)/(1+d)+(1+g1)^2/(1+d)^2+...+(1+g1)^10/(1+d)^10]
+(1+g1)^10/(1+d)^10*[(1+g2)/(1+d)+(1+g2)^2/(1+d)^2+...+(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+0.05)/(1+0.11) = 0.94594594594595
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694

Intrinsic Value: DCF (FCF Based)=Free Cash Flow per Share*{[x+x^2+...+x^10]+x^10*[y+y^2+...+y^10]}
=Free Cash Flow per Share*[x*(1-x^10)/(1-x)+x^10*y*(1-y^10)/(1-y)]
=0.087*11.5406
=1.00

Margin of Safety (FCF Based)=(Intrinsic Value: DCF (FCF Based)-Current Price)/Intrinsic Value: DCF (FCF Based)
=(1-4.92)/1
=-392.00 %

* 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.

What does a Intrinsic Value: DCF (FCF Based) of A$1.00 mean?
Aussie Broadband (ASX:ABB) has a Intrinsic Value: DCF (FCF Based) of A$1.00 as of Aug. 18, 2026. Intrinsic Value: DCF (FCF Based) is the stock value based on a two-stage discounted free cash flow model. View historical data on Aussie Broadband and its competitors. According to the industry distribution chart, Aussie Broadband ranks #999999 out of 54 companies in the Telecommunication Services industry.
Is Aussie Broadband's Intrinsic Value: DCF (FCF Based) too high?
Aussie Broadband's current Intrinsic Value: DCF (FCF Based) is A$1.00. Based on the distribution chart, Aussie Broadband ranks #999999 out of 54 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, Aussie Broadband has a GF Score™ of 53/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Aussie Broadband's Intrinsic Value: DCF (FCF Based) compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Aussie Broadband ranks #999999 out of 54 companies for Intrinsic Value: DCF (FCF Based). This places Aussie Broadband in the lower half of its industry. The industry median Intrinsic Value: DCF (FCF Based) is 0.62. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Intrinsic Value: DCF (FCF Based) for a Telecommunication Services company?
The median Intrinsic Value: DCF (FCF Based) among Telecommunication Services companies is 0.62, based on 54 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: DCF (FCF Based) significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: DCF (FCF Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Intrinsic Value: DCF (FCF Based) mean?
A high Intrinsic Value: DCF (FCF Based) can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: DCF (FCF Based) is the stock value based on a two-stage discounted free cash flow model. View historical data on Aussie Broadband and its competitors. For the Telecommunication Services industry, the median Intrinsic Value: DCF (FCF Based) is 0.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aussie Broadband's current Intrinsic Value: DCF (FCF Based) is A$1.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aussie Broadband stock overvalued right now?
Based on GuruFocus' analysis, Aussie Broadband (ASX:ABB) is currently considered Fairly Valued. The stock's GF Value™ is A$4.84, compared to a current price of A$4.92 — trading 1.7% above its estimated fair value. The current Intrinsic Value: DCF (FCF Based) is A$1.00. Aussie Broadband's overall GF Score™ is 53/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Intrinsic Value: DCF (FCF Based) calculated?
Intrinsic Value: DCF (FCF Based) is calculated from a company's financial statements. For Aussie Broadband (ASX:ABB), the current Intrinsic Value: DCF (FCF Based) is A$1.00 as of Aug. 18, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Aussie Broadband (ASX:ABB) Overvalued in 2026?

Based on GuruFocus' analysis, Aussie Broadband stock appears to be overvalued. The current stock price of A$4.92 is trading 1.7% above its estimated GF Value™ of A$4.84. GuruFocus considers Aussie Broadband to be Fairly Valued.

Key valuation signals for ASX:ABB:

  • Intrinsic Value: DCF (FCF Based): A$1.00
  • GF Value™: A$4.84 vs. price of A$4.92 (1.7% above fair value)
  • GF Score™: 53/100 with 3 warning signs

No single metric tells the full story. See the ASX:ABB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Aussie Broadband Business Description

Other Exchanges 9JI:Germany
Address 3 Electra Avenue, Morwell, VIC, AUS, 3840
Aussie Broadband is Australia's fourth-largest retail internet services provider. It provides broadband services to households and businesses, as well as wholesale solutions to commercial enterprises. Aussie Broadband also operates as a mobile virtual network operator, using Optus' network to provide mobile services. In 2020, the firm expanded its offerings by laying its own fiber network to service enterprise and government customers. The firm has undertaken two acquisitions, Symbio and Over the Wire, expanding its offerings for enterprise, government, and wholesale customers.
53GF Score

Get the complete analysis for ASX:ABB

Intrinsic Value: DCF (FCF Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$4.92
Price
A$4.84
GF Value