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Surani Steel Tubes (NSE:SURANI) Intrinsic Value: Projected FCF : ₹-30.50 (As of Jun. 24, 2024)


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What is Surani Steel Tubes 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 (2024-06-24), Surani Steel Tubes's Intrinsic Value: Projected FCF is ₹-30.50. The stock price of Surani Steel Tubes is ₹346.00. Therefore, Surani Steel Tubes's Price-to-Intrinsic-Value-Projected-FCF of today is 0.0.

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

NSE:SURANI's Price-to-Projected-FCF is not ranked *
in the Steel industry.
Industry Median: 0.695
* Ranked among companies with meaningful Price-to-Projected-FCF only.

Surani Steel Tubes Intrinsic Value: Projected FCF Historical Data

The historical data trend for Surani Steel Tubes'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.

Surani Steel Tubes Intrinsic Value: Projected FCF Chart

Surani Steel Tubes 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 -45.72 -9.29 -1.35 -3.19 -30.50

Surani Steel Tubes Semi-Annual Data
Mar14 Mar15 Mar16 Mar17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Mar22 Sep22 Mar23 Sep23 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 -1.35 - -3.19 - -30.50

Competitive Comparison of Surani Steel Tubes's Intrinsic Value: Projected FCF

For the Steel subindustry, Surani Steel Tubes'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.


Surani Steel Tubes's Price-to-Projected-FCF Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Surani Steel Tubes's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Surani Steel Tubes's Price-to-Projected-FCF falls into.



Surani Steel Tubes 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 Surani Steel Tubes's Free Cash Flow(6 year avg) = ₹-110.72.

Surani Steel Tubes'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)
=(9.5203515959648*-110.72485714286+883.464*0.8)/11.389
=-30.50

* 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.


Surani Steel Tubes  (NSE:SURANI) 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.

Surani Steel Tubes's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=346.00/-30.500339837824
=

* 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.


Surani Steel Tubes Intrinsic Value: Projected FCF Related Terms

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Surani Steel Tubes (NSE:SURANI) Business Description

Traded in Other Exchanges
N/A
Address
Bayad Road, Sr. No. 110,115, Opposite Vinayak TMT, Village Sampa, Taluka Dahegam, Gandhinagar, GJ, IND, 382315
Surani Steel Tubes Ltd is engaged in manufacturing and supplying ERW pipes and steel tubes. The company operates a single segment named manufacturing ERW MS PIPES and trading of MS PIPE. The company's products include ERW Round Pipes and Tubes, Square and Rectangle Hollow Sections, MS Slit Coils and Strips, Hot Roll Coils, and Brochures. Geographically, it operates only in India.

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