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Weir Group (CHIX:WEIRL) Intrinsic Value: Projected FCF : £11.37 (As of Jun. 04, 2024)


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What is Weir 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 (2024-06-04), Weir Group's Intrinsic Value: Projected FCF is £11.37. The stock price of Weir Group is £21.20. Therefore, Weir Group's Price-to-Intrinsic-Value-Projected-FCF of today is 1.9.

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

CHIX:WEIRl' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.78   Med: 1.53   Max: 2.08
Current: 1.86

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Weir Group was 2.08. The lowest was 0.78. And the median was 1.53.

CHIX:WEIRl's Price-to-Projected-FCF is ranked worse than
57.76% of 1913 companies
in the Industrial Products industry
Industry Median: 1.53 vs CHIX:WEIRl: 1.86

Weir Group Intrinsic Value: Projected FCF Historical Data

The historical data trend for Weir 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.

Weir Group Intrinsic Value: Projected FCF Chart

Weir Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.70 9.59 9.59 10.67 11.43

Weir Group Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 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 9.59 - 10.67 - 11.43

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

For the Specialty Industrial Machinery subindustry, Weir 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.


Weir Group's Price-to-Projected-FCF Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Weir Group's Price-to-Projected-FCF distribution charts can be found below:

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



Weir 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 Weir Group's Free Cash Flow(6 year avg) = £168.89.

Weir 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*168.88571428571+1689.8*0.8)/259.800
=11.39

* 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.


Weir Group  (CHIX:WEIRl) 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.

Weir 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
=21.20/11.392191607143
=1.86

* 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.


Weir Group Intrinsic Value: Projected FCF Related Terms

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Weir Group (CHIX:WEIRL) Business Description

Traded in Other Exchanges
Address
1 West Regent Street, Glasgow, GBR, G2 1RW
Weir Group PLC manufactures equipment for minerals and other industrial end markets. The company's operating segment includes Minerals and ESCO. The Minerals segment is into engineering, manufacturing and service processing technology used in abrasive, high-wear mining applications. It is also used in infrastructure and general industrial markets. The ESCO segment is into the provision of Ground Engaging Tools (G.E.T.) for large mining machines. It operates predominantly in mining and infrastructure markets where its technology improves productivity through extended wear life, increased safety and reduced energy consumption. The company generates maximum revenue from the Minerals segment. Geographically, the company derives a majority of its revenue from South America.

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