Macquarie Global Infrastructure Total Return Fund (Macquarie Global Infrastructure Total Return Fund) Intrinsic Value: DCF (FCF Based) : $68.72 (As of May. 07, 2024)

View and export this data going back to . Start your Free Trial

What is Macquarie Global Infrastructure Total Return Fund Intrinsic Value: DCF (FCF Based)?

As of today (2024-05-07), Macquarie Global Infrastructure Total Return Fund's intrinsic value calculated from the Discounted Cash Flow model is $68.72.

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.

Macquarie Global Infrastructure Total Return Fund'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 Macquarie Global Infrastructure Total Return Fund is 66.79%.

The industry rank for Macquarie Global Infrastructure Total Return Fund's Intrinsic Value: DCF (FCF Based) or its related term are showing as below:

MGU's Price-to-DCF (FCF Based) is not ranked ^*
in the Asset Management industry.
Industry Median: 1.04
* Ranked among companies with meaningful Price-to-DCF (FCF Based) only.

Macquarie Global Infrastructure Total Return Fund Intrinsic Value: DCF (FCF Based) Historical Data

The historical data trend for Macquarie Global Infrastructure Total Return Fund'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.

* Premium members only.

Macquarie Global Infrastructure Total Return Fund Intrinsic Value: DCF (FCF Based) Chart

Macquarie Global Infrastructure Total Return Fund Annual Data

Trend

Nov17

Nov18

Nov19

Nov20

Nov21

Nov22

Intrinsic Value: DCF (FCF Based)

Get a 7-Day Free Trial

Macquarie Global Infrastructure Total Return Fund Semi-Annual Data
	Nov17	May18	Nov18	May19	Nov19	May20	Nov20	May21	Nov21	May22	Nov22
Intrinsic Value: DCF (FCF Based)	Get a 7-Day Free Trial						-	-	-	-	-

Competitive Comparison of Macquarie Global Infrastructure Total Return Fund's Intrinsic Value: DCF (FCF Based)

For the Asset Management subindustry, Macquarie Global Infrastructure Total Return Fund'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.

Macquarie Global Infrastructure Total Return Fund's Price-to-DCF (FCF Based) Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Macquarie Global Infrastructure Total Return Fund's Price-to-DCF (FCF Based) distribution charts can be found below:

* The bar in red indicates where Macquarie Global Infrastructure Total Return Fund's Price-to-DCF (FCF Based) falls into.

Macquarie Global Infrastructure Total Return Fund 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 4.46%. 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 = 17.70%
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.
=> Macquarie Global Infrastructure Total Return Fund's average Free Cash Flow Growth Rate in the past 3 years was 17.70%, which is between 5% and 20%. => GuruFocus defaults => Growth Rate: 17.70%

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 = $2.566.
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.

Macquarie Global Infrastructure Total Return Fund'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+0.177)/(1+0.11) = 1.0603603603604
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^2

...

y^10]}

Free Cash Flow per Share

(1-x^10)

(1-x)

x^10

(1-y^10)

(1-y)]

2.566

26.7796

68.72

Margin of Safety (FCF Based)	=	(Intrinsic Value: DCF (FCF Based)	-	Current Price)	/	Intrinsic Value: DCF (FCF Based)
	=	(68.72	-	22.82)	/	68.72
	=	66.79 %

Macquarie Global Infrastructure Total Return Fund (NYSE:MGU) 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.

Macquarie Global Infrastructure Total Return Fund Intrinsic Value: DCF (FCF Based) Related Terms

Thank you for viewing the detailed overview of Macquarie Global Infrastructure Total Return Fund's Intrinsic Value: DCF (FCF Based) provided by GuruFocus.com. Please click on the following links to see related term pages.

Macquarie Global Infrastructure Total Return Fund (Macquarie Global Infrastructure Total Return Fund) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Macquarie Global Infrastructure Total Return Fund Inc. (NYSE:MGU) » Definitions » Intrinsic Value: DCF (FCF Based)

Comparable Companies

DSM ASG NCA MCI AEF MCR PMX MMT EDD WHF BLK BX TSX:BN OSTO:INVE A KKR APO BK AMP STT OSTO:EQT

Traded in Other Exchanges

N/A

Address

125 West 55th Street, New York, NY, USA, 10019

Website

https://www.macquarie.com

Macquarie Global Infrastructure Total Return Fund Inc. is a United States based diversified, closed-end investment management company. Its investment objective is to provide its common stockholders a high total return consisting of dividends and other income and capital appreciation. The Fund seeks to achieve its investment objective by investing at least 80% of its total assets in equity and equity-like securities & instruments, such as common stocks, preferred stocks, convertible securities; and hybrid securities issued by the U.S. and Non-U.S. issuers that primarily own or operate infrastructure assets.

Executives

Brad Frishberg	officer: Chief Executive Officer	125 WEST 55TH STREET, LEVEL 10, NEW YORK NY 10019
Emilia Wang	officer: Chief Legal Officer	100 INDEPENDENCE, 610 MARKET STREET, PHILADELPHIA PA 19106
William H Speacht	officer: Chief Compliance Officer	2005 MARKET ST, 34TH FL, PHILADELPHIA PA 19103
John Leonard	director	125 55TH STREET, LEVEL 21, NEW YORK NY 10019
Daniel V Geatens	officer: CFO and Treasurer	C/O DELAWARE INVESTMENTS, 2005 MARKET STREET, PHILADELPHIA PA 19103
Meredith Meyer	other: Chief Operating Officer of ADV	125 WEST 55TH STREET, LEVEL 10, NEW YORK NY 10019
Fink William J Jr	officer: Chief Compliance Officer	125 WEST 55TH STREET, LEVEL 15, NEW YORK NY 10019
Jonathan S Ong	other: Portfolio Manager	1 MARTIN PLACE, LEVEL 21, SYDNEY C3 2000
Andrew Maple-brown	other: Director of Investment Advisor	125 WEST 55TH STREET, LEVEL 15, NEW YORK NY 10019
David P Oconnor	other: Director of Investment Adviser	C/O DELAWARE INVESTMENTS, 2005 MARKET STREET, PHILADELPHIA PA 19103
James Blake	officer: Chief Complance Officer	2005 MARKET STREET, PHILADELPHIA PA 19103
John H Kim	officer: Chief Legal Officer&Secretary	C/O ANJIE LAROCCA, DEUTSCHE BANK, 1251 AVENUE OF THE AMERICAS, NEW YORK NY 10020
David Dali	other: Director of Adviser	ONE INTERNATIONAL PLACE, SUITE 4402, BOSTON MA 02110
Brett Alan Byrd	officer: Officer of Investment Adviser	23316 PORTLAND LANE, VALENCIA CA 91355
Mark Gregory Torline	other: Director of Investment Adviser	300 PACIFIC COAST HIGHWAY, SUITE 305, HUNTINGTON BEACH CA 92648