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AIA Group (AIA Group) Intrinsic Value: Projected FCF : $6.43 (As of Apr. 29, 2024)


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What is AIA Group 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 (2024-04-29), AIA Group's Intrinsic Value: Projected FCF is $6.43. The stock price of AIA Group is $7.36. Therefore, AIA Group's Price-to-Intrinsic-Value-Projected-FCF of today is 1.1.

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

AAIGF' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.05   Med: 2.07   Max: 2.8
Current: 1.14

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of AIA Group was 2.80. The lowest was 1.05. And the median was 2.07.

AAIGF's Price-to-Projected-FCF is ranked worse than
73.72% of 392 companies
in the Insurance industry
Industry Median: 0.65 vs AAIGF: 1.14

AIA Group Intrinsic Value: Projected FCF Historical Data

The historical data trend for AIA Group'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.

AIA Group Intrinsic Value: Projected FCF Chart

AIA Group Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.36 6.10 6.53 5.54 6.60

AIA Group Semi-Annual Data
May14 Nov14 May15 Nov15 May16 Nov16 May17 Nov17 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 6.53 - 5.54 - 6.60

Competitive Comparison of AIA Group's Intrinsic Value: Projected FCF

For the Insurance - Life subindustry, AIA Group'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.


AIA Group's Price-to-Projected-FCF Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, AIA Group's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where AIA Group's Price-to-Projected-FCF falls into.



AIA Group 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 AIA Group's Free Cash Flow(6 year avg) = $4,548.86.

AIA Group'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*4548.8571428571+41111*0.8)/11528.000
=6.61

* 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.


AIA Group  (OTCPK:AAIGF) 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.

AIA Group's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=7.36/6.6096043858272
=1.11

* 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.


AIA Group Intrinsic Value: Projected FCF Related Terms

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AIA Group (AIA Group) Business Description

Address
No. 1 Connaught Road Central, 35th Floor, AIA Central, Hong Kong, HKG
AIA is one of the largest pan-Asian insurance providers with a wide range of products including retirement savings plans, life insurance, and accident and health insurance. The company is headquartered in Hong Kong. It was previously part of AIG and went for a separate listing in Hong Kong in 2010. The firm also provides employee benefits, credit life, and pension services to corporate clients. AIA is present in 18 markets and serves the holders of more than 30 million individual policies and over 16 million participating members of group insurance schemes.

AIA Group (AIA Group) Headlines