HISEF (Hisense Home Appliances Group Co) Intrinsic Value: DCF (FCF Based): $5.19 (As of Aug. 19, 2026) — 2495% Above Median

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.

HISEF Hisense Home Appliances Group Co Ltd HISEF
85 GF Score
Price $2.78
GF Value $2.74
Valuation Fairly Valued
! 5 Warning Signs
View Full Analysis

What is Hisense Home Appliances Group Co Intrinsic Value: DCF (FCF Based)?

Hisense Home Appliances Group Co HISEF 85 Intrinsic Value: DCF (FCF Based) is $5.19 as of Aug. 19, 2026, which is 2495% above its 10-year median of 0.20. GuruFocus rates HISEF with a GF Score™ of 85/100 and a GF Value™ of $2.74 (Fairly Valued). The stock has 5 warning signs investors should review. Among 42 Furnishings, Fixtures & Appliances companies, Hisense Home Appliances Group Co ranks better than 90.48% on this metric.

As of today (2026-08-19), Hisense Home Appliances Group Co's intrinsic value calculated from the Discounted Cash Flow model is $5.19.

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.

Hisense Home Appliances Group Co's Predictability Rank is 4.5-Stars.

Margin of Safety (FCF Based) using Discounted Cash Flow model for Hisense Home Appliances Group Co is 46.44%.

The industry rank for Hisense Home Appliances Group Co's Intrinsic Value: DCF (FCF Based) or its related term are showing as below:

HISEF's Price-to-DCF (FCF Based) is ranked better than
90.48% of 42 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 0.945 vs HISEF: 0.54

Hisense Home Appliances Group Co  (OTCPK:HISEF) 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.


Hisense Home Appliances Group Co Intrinsic Value: DCF (FCF Based) Related Terms


Hisense Home Appliances Group Co Intrinsic Value: DCF (FCF Based) Historical Data

* Premium members only.

The historical data trend for Hisense Home Appliances Group Co'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.

Hisense Home Appliances Group Co Intrinsic Value: DCF (FCF Based) Chart

Hisense Home Appliances Group Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Intrinsic Value: DCF (FCF Based)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.00 6.01 22.36 9.12 10.25

Hisense Home Appliances Group Co Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Intrinsic Value: DCF (FCF Based) 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 18.64 14.06 10.25 14.00 3.96

HISEF vs SN, SGI, MHK: Intrinsic Value: DCF (FCF Based) Comparison

For the Furnishings, Fixtures & Appliances subindustry, Hisense Home Appliances Group Co'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.


Hisense Home Appliances Group Co Price-to-DCF (FCF Based) vs Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Hisense Home Appliances Group Co's Price-to-DCF (FCF Based) distribution charts can be found below:

* The bar in red indicates where Hisense Home Appliances Group Co's Price-to-DCF (FCF Based) falls into.


HISEF
85GF Score
Hisense Home Appliances Group Co Ltd HISEF
Intrinsic Value: DCF (FCF Based) is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hisense Home Appliances Group Co 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 4.64%. 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 = 20%
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.
=> Hisense Home Appliances Group Co's average Free Cash Flow Growth Rate in the past 10 years was 48.10%, which is no less than 20%. GuruFocus defaults => Growth Rate: 20%

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 = $0.166.
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.

Hisense Home Appliances Group Co'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+0.2)/(1+0.11) = 1.0810810810811
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)]
=0.166*31.2501
=5.19

Margin of Safety (FCF Based)=(Intrinsic Value: DCF (FCF Based)-Current Price)/Intrinsic Value: DCF (FCF Based)
=(5.19-2.78)/5.19
=46.44 %

* 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 $5.19 mean?
Hisense Home Appliances Group Co (HISEF) has a Intrinsic Value: DCF (FCF Based) of $5.19 as of Aug. 19, 2026. Intrinsic Value: DCF (FCF Based) is the stock value based on a two-stage discounted free cash flow model. View historical data on Hisense Home Appliances Group Co and its competitors. This is 2495% above median its historical median of 0.20. Over the past decade, Hisense Home Appliances Group Co's Intrinsic Value: DCF (FCF Based) has ranged from 0.08 to 29.62. According to the industry distribution chart, Hisense Home Appliances Group Co ranks #4 out of 42 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 9.5%.
Is Hisense Home Appliances Group Co's Intrinsic Value: DCF (FCF Based) too high?
Hisense Home Appliances Group Co's current Intrinsic Value: DCF (FCF Based) of $5.19 is 2495% above median its 10-year median of 0.20. Over the past 10 years, this metric has ranged from a low of 0.08 to a high of 29.62. The Furnishings, Fixtures & Appliances industry median Intrinsic Value: DCF (FCF Based) is 0.95. Hisense Home Appliances Group Co's value of $5.19 is 449.2% above this industry median. Based on the distribution chart, Hisense Home Appliances Group Co ranks #4 out of 42 companies in the Furnishings, Fixtures & Appliances industry, which is in the top quartile — a strong position relative to peers. Overall, Hisense Home Appliances Group Co has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hisense Home Appliances Group Co's Intrinsic Value: DCF (FCF Based) compare to SN and SGI?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Hisense Home Appliances Group Co ranks #4 out of 42 companies for Intrinsic Value: DCF (FCF Based). This places Hisense Home Appliances Group Co in the top 10% of its industry — outperforming the majority of peers. The industry median Intrinsic Value: DCF (FCF Based) is 0.95. Hisense Home Appliances Group Co's value of $5.19 is 449.2% above this benchmark. Historically, Hisense Home Appliances Group Co's own Intrinsic Value: DCF (FCF Based) has ranged from 0.08 to 29.62 over the past decade. While the company's 10-year median is 0.20 vs. the industry median of 0.95, Hisense Home Appliances Group Co has consistently been above the industry average. 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 Furnishings, Fixtures & Appliances company?
The median Intrinsic Value: DCF (FCF Based) among Furnishings, Fixtures & Appliances companies is 0.95, based on 42 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. Hisense Home Appliances Group Co's current Intrinsic Value: DCF (FCF Based) of $5.19 is 449.2% above the industry median. 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 Hisense Home Appliances Group Co and its competitors. For the Furnishings, Fixtures & Appliances industry, the median Intrinsic Value: DCF (FCF Based) is 0.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hisense Home Appliances Group Co's current Intrinsic Value: DCF (FCF Based) is $5.19, which is 2495% above median its own 10-year median of 0.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hisense Home Appliances Group Co stock overvalued right now?
Based on GuruFocus' analysis, Hisense Home Appliances Group Co (HISEF) is currently considered Fairly Valued. The stock's GF Value™ is $2.74, compared to a current price of $2.78 — trading 1.5% above its estimated fair value. The current Intrinsic Value: DCF (FCF Based) is $5.19, which is 2495% above median its 10-year median of 0.20 and 449.2% above the Furnishings, Fixtures & Appliances industry median of 0.95. Hisense Home Appliances Group Co's overall GF Score™ is 85/100 with 5 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 Hisense Home Appliances Group Co (HISEF), the current Intrinsic Value: DCF (FCF Based) is $5.19 as of Aug. 19, 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 Hisense Home Appliances Group Co (HISEF) Overvalued in 2026?

Based on GuruFocus' analysis, Hisense Home Appliances Group Co stock appears to be overvalued. The current stock price of $2.78 is trading 1.5% above its estimated GF Value™ of $2.74. GuruFocus considers Hisense Home Appliances Group Co to be Fairly Valued.

Key valuation signals for HISEF:

  • Intrinsic Value: DCF (FCF Based): $5.19 (2495% above median its 10-year median of 0.20)
  • GF Value™: $2.74 vs. price of $2.78 (1.5% above fair value)
  • GF Score™: 85/100 with 5 warning signs
  • Industry Position: 449.2% above the Furnishings, Fixtures & Appliances median (#4 of 42)

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


Hisense Home Appliances Group Co Business Description

Address No. 8 Ronggang Road, Ronggui Street, Shunde District, Guangdong Province, Foshan, CHN, 528303
Hisense Home Appliances Group Co Ltd is a manufacturer of white household electrical appliances in the People's Republic of China, with eight brand names, namely Hisense, Ronshen, KELON, HITACHI, YORK, Gorenje, ASKO, and SANDEN. The company produces refrigerators, air-conditioners, freezers, washing machines, and Kitchen electrical appliances. The businesses of the Company are set out as follows: HVAC Business Work; Refrigerator and Washing Machine Business Work; Automotive Air Conditioner Compressor and Integrated Thermal Management System Business Work; Smart Home Business Work; Overseas Markets for Home Appliances Business Work and Implementing the Manufacturing Work. The majority of the its revenue is generated from China.
85GF Score

Get the complete analysis for HISEF

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

$2.78
Price
$2.74
GF Value