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The Hi-Tech Gears (NSE:HITECHGEAR) Intrinsic Value: Projected FCF : ₹272.66 (As of Jun. 22, 2024)


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What is The Hi-Tech Gears 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 (2024-06-22), The Hi-Tech Gears's Intrinsic Value: Projected FCF is ₹272.66. The stock price of The Hi-Tech Gears is ₹976.85. Therefore, The Hi-Tech Gears's Price-to-Intrinsic-Value-Projected-FCF of today is 3.6.

The historical rank and industry rank for The Hi-Tech Gears's Intrinsic Value: Projected FCF or its related term are showing as below:

NSE:HITECHGEAR' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.35   Med: 1.44   Max: 3.58
Current: 3.58

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of The Hi-Tech Gears was 3.58. The lowest was 0.35. And the median was 1.44.

NSE:HITECHGEAR's Price-to-Projected-FCF is ranked worse than
83.98% of 899 companies
in the Vehicles & Parts industry
Industry Median: 1.03 vs NSE:HITECHGEAR: 3.58

The Hi-Tech Gears Intrinsic Value: Projected FCF Historical Data

The historical data trend for The Hi-Tech Gears'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.

The Hi-Tech Gears Intrinsic Value: Projected FCF Chart

The Hi-Tech Gears Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 226.68 189.51 177.95 187.78 273.63

The Hi-Tech Gears Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 187.78 - - - 273.63

Competitive Comparison of The Hi-Tech Gears's Intrinsic Value: Projected FCF

For the Auto Parts subindustry, The Hi-Tech Gears'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.


The Hi-Tech Gears's Price-to-Projected-FCF Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, The Hi-Tech Gears's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where The Hi-Tech Gears's Price-to-Projected-FCF falls into.



The Hi-Tech Gears 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 The Hi-Tech Gears's Free Cash Flow(6 year avg) = ₹117.51.

The Hi-Tech Gears'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 (Mar24)*0.8)/Shares Outstanding (Diluted Average)
=(12.018181128481*117.50857142857+4661.53*0.8)/18.813
=273.29

* 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.


The Hi-Tech Gears  (NSE:HITECHGEAR) 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.

The Hi-Tech Gears's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=976.85/273.29311091147
=3.57

* 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.


The Hi-Tech Gears Intrinsic Value: Projected FCF Related Terms

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The Hi-Tech Gears (NSE:HITECHGEAR) Business Description

Traded in Other Exchanges
Address
Sushant Lok 1, Sector 27, Tower B, 14th Floor, Unitech's Millennium plaza, Gurugram, HR, IND, 122009
The Hi-Tech Gears Ltd is a manufacturer of auto components. The company is primarily engaged in the business of gears and transmission components. It provides diverse parts and accessories for motor vehicles such as brakes, gearboxes, axles, road wheels, suspension shock absorbers, radiators, silencers, exhaust pipes, catalyzer, clutches, steering wheels, steering columns and steering boxes. The company's product includes power takeoff, car transmission and driveline components, precision forging or precision machining, and machined sintered components. Geographically, it derives a majority of revenue from India.

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