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FAR Chemical Industry (DHA:FARCHEM) Intrinsic Value: Projected FCF : BDT7.28 (As of May. 03, 2024)


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What is FAR Chemical Industry 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 (2024-05-03), FAR Chemical Industry's Intrinsic Value: Projected FCF is BDT7.28. The stock price of FAR Chemical Industry is BDT22.20. Therefore, FAR Chemical Industry's Price-to-Intrinsic-Value-Projected-FCF of today is 3.1.

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

DHA:FARCHEM' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.67   Med: 1.04   Max: 9.64
Current: 3.05

During the past 10 years, the highest Price-to-Intrinsic-Value-Projected-FCF of FAR Chemical Industry was 9.64. The lowest was 0.67. And the median was 1.04.

DHA:FARCHEM's Price-to-Projected-FCF is ranked worse than
77.89% of 1072 companies
in the Chemicals industry
Industry Median: 1.23 vs DHA:FARCHEM: 3.05

FAR Chemical Industry Intrinsic Value: Projected FCF Historical Data

The historical data trend for FAR Chemical Industry'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.

FAR Chemical Industry Intrinsic Value: Projected FCF Chart

FAR Chemical Industry Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.87 11.13 12.09 6.30 8.72

FAR Chemical Industry Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 4.24 2.12 1.10 8.72 7.28

Competitive Comparison of FAR Chemical Industry's Intrinsic Value: Projected FCF

For the Specialty Chemicals subindustry, FAR Chemical Industry'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.


FAR Chemical Industry's Price-to-Projected-FCF Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, FAR Chemical Industry's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where FAR Chemical Industry's Price-to-Projected-FCF falls into.



FAR Chemical Industry 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 FAR Chemical Industry's Free Cash Flow(6 year avg) = BDT-34.80.

FAR Chemical Industry'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 (Sep23)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*-34.8008+2398.34*0.8)/218.093
=7.28

* 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.


FAR Chemical Industry  (DHA:FARCHEM) 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.

FAR Chemical Industry's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=22.20/7.2783452388621
=3.05

* 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.


FAR Chemical Industry Intrinsic Value: Projected FCF Related Terms

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FAR Chemical Industry (DHA:FARCHEM) Business Description

Traded in Other Exchanges
N/A
Address
House No. 11 (Floor: 5A), Road No. 12, Block-F, Niketon, Gulshan-1, Dhaka, BGD, 1212
FAR Chemical Industry Ltd operates in the textile dyeing chemical industry. The principal activities of the company are to manufacture and export chemical products to different export-oriented textiles, dyeing, and apparel industries. Its product range consists of Softening agent, Scouring agent, Anti-foaming agent, Leveling agent, Fixing agent, Retarding agent, Stabilizer, Bleaching agent, and other chemical products.

FAR Chemical Industry (DHA:FARCHEM) Headlines

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