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Tianqi Lithium Industries (SZSE:002466) Intrinsic Value: Projected FCF : ¥79.04 (As of May. 15, 2024)


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What is Tianqi Lithium Industries 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 (2024-05-15), Tianqi Lithium Industries's Intrinsic Value: Projected FCF is ¥79.04. The stock price of Tianqi Lithium Industries is ¥38.49. Therefore, Tianqi Lithium Industries's Price-to-Intrinsic-Value-Projected-FCF of today is 0.5.

The historical rank and industry rank for Tianqi Lithium Industries's Intrinsic Value: Projected FCF or its related term are showing as below:

SZSE:002466' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.49   Med: 4.02   Max: 11.38
Current: 0.49

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Tianqi Lithium Industries was 11.38. The lowest was 0.49. And the median was 4.02.

SZSE:002466's Price-to-Projected-FCF is ranked better than
86.85% of 1072 companies
in the Chemicals industry
Industry Median: 1.265 vs SZSE:002466: 0.49

Tianqi Lithium Industries Intrinsic Value: Projected FCF Historical Data

The historical data trend for Tianqi Lithium Industries'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.

Tianqi Lithium Industries Intrinsic Value: Projected FCF Chart

Tianqi Lithium Industries 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 10.24 5.54 9.76 52.71 78.69

Tianqi Lithium Industries 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 60.54 67.89 77.99 78.69 79.04

Competitive Comparison of Tianqi Lithium Industries's Intrinsic Value: Projected FCF

For the Specialty Chemicals subindustry, Tianqi Lithium Industries'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.


Tianqi Lithium Industries's Price-to-Projected-FCF Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Tianqi Lithium Industries's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Tianqi Lithium Industries's Price-to-Projected-FCF falls into.



Tianqi Lithium Industries 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 Tianqi Lithium Industries's Free Cash Flow(6 year avg) = ¥6,133.40.

Tianqi Lithium Industries'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)
=(14.862653310476*6133.39744+47818.229*0.8)/1637.305
=79.04

* 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.


Tianqi Lithium Industries  (SZSE:002466) 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.

Tianqi Lithium Industries's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=38.49/79.040339439555
=0.49

* 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.


Tianqi Lithium Industries Intrinsic Value: Projected FCF Related Terms

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Tianqi Lithium Industries (SZSE:002466) Business Description

Traded in Other Exchanges
N/A
Address
No.10 East Gaopeng Road, Hi-Tech Development Zone, Sichuan Province, Chengdu, CHN, 629200
Tianqi Lithium is a leading new energy materials company headquartered in China. The company is the largest producer of mined lithium globally in terms of output and is ranked third in terms of revenue generated from lithium, according to Wood Mackenzie. It is also the world's fourth largest and Asia's second largest lithium compound producer, as measured by production output, according to the same source. Tianqi is the only lithium producer in China that has achieved 100% self-sufficiency and has fully vertically integrated lithium mines. It operates in critical stages of the lithium value chain, including: 1) mining of lithium ore and manufacturing of lithium concentrate; and 2) manufacturing of lithium compounds and derivatives.

Tianqi Lithium Industries (SZSE:002466) Headlines

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