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Zhongzhi Pharmaceutical Holdings (HKSE:03737) Intrinsic Value: Projected FCF : HK$1.57 (As of Dec. 15, 2024)


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What is Zhongzhi Pharmaceutical Holdings 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 (2024-12-15), Zhongzhi Pharmaceutical Holdings's Intrinsic Value: Projected FCF is HK$1.57. The stock price of Zhongzhi Pharmaceutical Holdings is HK$0.93. Therefore, Zhongzhi Pharmaceutical Holdings's Price-to-Intrinsic-Value-Projected-FCF of today is 0.0.

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

During the past 10 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Zhongzhi Pharmaceutical Holdings was 1.28. The lowest was 0.69. And the median was 0.91.

HKSE:03737's Price-to-Projected-FCF is not ranked *
in the Drug Manufacturers industry.
Industry Median: 1.77
* Ranked among companies with meaningful Price-to-Projected-FCF only.

Zhongzhi Pharmaceutical Holdings Intrinsic Value: Projected FCF Historical Data

The historical data trend for Zhongzhi Pharmaceutical Holdings'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.

Zhongzhi Pharmaceutical Holdings Intrinsic Value: Projected FCF Chart

Zhongzhi Pharmaceutical Holdings 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 - 1.30 1.09 1.57 1.57

Zhongzhi Pharmaceutical Holdings Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 - 1.57 - 1.57 -

Competitive Comparison of Zhongzhi Pharmaceutical Holdings's Intrinsic Value: Projected FCF

For the Drug Manufacturers - Specialty & Generic subindustry, Zhongzhi Pharmaceutical Holdings'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.


Zhongzhi Pharmaceutical Holdings's Price-to-Projected-FCF Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Zhongzhi Pharmaceutical Holdings's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Zhongzhi Pharmaceutical Holdings's Price-to-Projected-FCF falls into.



Zhongzhi Pharmaceutical Holdings 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 Zhongzhi Pharmaceutical Holdings's Free Cash Flow(6 year avg) = HK$27.96.

Zhongzhi Pharmaceutical Holdings'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)
=(14.862653310476*27.958714285714+1146.845*0.8)/846.999
=1.57

* 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.


Zhongzhi Pharmaceutical Holdings  (HKSE:03737) 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.

Zhongzhi Pharmaceutical Holdings's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=0.93/1.5738113946241
=0.59

* 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.


Zhongzhi Pharmaceutical Holdings Intrinsic Value: Projected FCF Related Terms

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Zhongzhi Pharmaceutical Holdings Business Description

Traded in Other Exchanges
N/A
Address
No. 3 Kangtai Road South, Torch Development Zone, Guangdong Province, Zhongshan, CHN
Zhongzhi Pharmaceutical Holdings Ltd is engaged in the business of manufacturing and selling pharmaceutical products. The group's operations can be divided into three segments, namely Pharmaceutical manufacturing, Operation of chain pharmacies, and Operation of online pharmacies in Zhongshan in the Guangdong province, the PRC. In the Pharmaceutical manufacturing segment, the company is engaged in the research and development, manufacturing and sale of Chinese patent medicines. In the Operation of chain pharmacies segment, the firm operates chain pharmacies in Zhongshan under the brand Zeus for the sale of pharmaceutical products. The Operation of online pharmacies segment sells medicines online. It derives a majority of its revenue from the PRC.
Executives
Jiang Li Xia 2202 Interest of your spouse
Lai Zhi Tian 2201 Interest of corporation controlled by you
Crystal Talent Investment Group Limited 2101 Beneficial owner
Cheng Jin Le 2201 Interest of corporation controlled by you
Advance Keypath Global Investment Limited 2101 Beneficial owner
Novich Positioning Investment (cayman) Limited 2201 Interest of corporation controlled by you
Novich Positioning Investment Limited Partnership 2101 Beneficial owner

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