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Blue Label Telecoms (JSE:BLU) Intrinsic Value: Projected FCF : R8.35 (As of Sep. 22, 2024)


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What is Blue Label Telecoms 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 (2024-09-22), Blue Label Telecoms's Intrinsic Value: Projected FCF is R8.35. The stock price of Blue Label Telecoms is R4.69. Therefore, Blue Label Telecoms's Price-to-Intrinsic-Value-Projected-FCF of today is 0.6.

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

JSE:BLU' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.22   Med: 0.48   Max: 1.73
Current: 0.56

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Blue Label Telecoms was 1.73. The lowest was 0.22. And the median was 0.48.

JSE:BLU's Price-to-Projected-FCF is ranked better than
73.09% of 275 companies
in the Telecommunication Services industry
Industry Median: 0.92 vs JSE:BLU: 0.56

Blue Label Telecoms Intrinsic Value: Projected FCF Historical Data

The historical data trend for Blue Label Telecoms'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.

Blue Label Telecoms Intrinsic Value: Projected FCF Chart

Blue Label Telecoms Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.30 12.90 13.24 10.70 8.35

Blue Label Telecoms Semi-Annual Data
Nov14 May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24
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 13.24 - 10.70 - 8.35

Competitive Comparison of Blue Label Telecoms's Intrinsic Value: Projected FCF

For the Telecom Services subindustry, Blue Label Telecoms'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.


Blue Label Telecoms's Price-to-Projected-FCF Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Blue Label Telecoms's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Blue Label Telecoms's Price-to-Projected-FCF falls into.



Blue Label Telecoms 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 Blue Label Telecoms's Free Cash Flow(6 year avg) = R367.25.

Blue Label Telecoms'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 (May24)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*367.25342857143+5009.684*0.8)/898.810
=8.35

* 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.


Blue Label Telecoms  (JSE:BLU) 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.

Blue Label Telecoms's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=4.69/8.3489602528049
=0.56

* 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.


Blue Label Telecoms Intrinsic Value: Projected FCF Related Terms

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Blue Label Telecoms Business Description

Traded in Other Exchanges
N/A
Address
75 Grayston Drive, Corner Benmore Road, Morningside Extension 5, Sandton, Johannesburg, GT, ZAF, 2196
Blue Label Telecoms Ltd is a technology company. It derives revenue from the distribution of airtime and mobile transaction services. It operates through four segments: African Distribution, International, Solutions and Corporate. African distribution includes the distribution of physical and virtual prepaid airtime and electricity of the South African telecommunication and utilities companies. International includes the distribution of physical and virtual prepaid airtime in India and Mexico and payment solutions in India. Solutions include the provision of a mobile transactional platform and the marketing of mobile and financial products. The company generates the vast majority of its revenue in South Africa.

Blue Label Telecoms Headlines