ZTE (ZTCOF) Intrinsic Value: Projected FCF: $2.08 (As of Aug. 27, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ZTCOF ZTE Corp ZTCOF
81 GF Score
Price $3.03
GF Value $3.27
Valuation Fairly Valued
! 6 Warning Signs
View Full Analysis

What is ZTE Intrinsic Value: Projected FCF?

ZTE ZTCOF 81 Intrinsic Value: Projected FCF is $2.08 as of Aug. 27, 2026. GuruFocus rates ZTCOF with a GF Score™ of 81/100 and a GF Value™ of $3.27 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,693 Hardware companies, ZTE ranks better than 56.23% on this metric.

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 (2026-08-27), ZTE's Intrinsic Value: Projected FCF is $2.08. The stock price of ZTE is $3.025. Therefore, ZTE's Price-to-Intrinsic-Value-Projected-FCF of today is 1.5.

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

ZTCOF' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.22   Med: 2.67   Max: 8.51
Current: 1.45

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of ZTE was 8.51. The lowest was 1.22. And the median was 2.67.

ZTCOF's Price-to-Projected-FCF is ranked better than
56.23% of 1693 companies
in the Hardware industry
Industry Median: 1.7 vs ZTCOF: 1.45

ZTE  (OTCPK:ZTCOF) 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.

ZTE's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=3.025/3.4340080572562
=0.88

* 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.


ZTE Intrinsic Value: Projected FCF Related Terms


ZTE Intrinsic Value: Projected FCF Historical Data

* Premium members only.

The historical data trend for ZTE'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.

ZTE Intrinsic Value: Projected FCF Chart

ZTE Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.96 1.01 1.65 1.75 2.66

ZTE Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 2.37 2.70 2.66 2.12 2.46

ZTCOF vs CSCO, MSI, HPE: Intrinsic Value: Projected FCF Comparison

For the Communication Equipment subindustry, ZTE'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.


ZTE Price-to-Projected-FCF vs Hardware Industry

For the Hardware industry and Technology sector, ZTE's Price-to-Projected-FCF distribution charts can be found below:

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


ZTCOF
81GF Score
ZTE Corp ZTCOF
Intrinsic Value: Projected FCF is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

ZTE 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 ZTE's Free Cash Flow(6 year avg) = $840.96.

ZTE'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 (Jun26)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*840.95504+11360.475*0.8)/4978.022
=3.43

* 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.

What does a Intrinsic Value: Projected FCF of $2.08 mean?
ZTE (ZTCOF) has a Intrinsic Value: Projected FCF of $2.08 as of Aug. 27, 2026. Intrinsic Value: Projected FCF is the stock value based on a projected free cash flow model. View historical data on ZTE and its competitors. According to the industry distribution chart, ZTE ranks #741 out of 1693 companies in the Hardware industry, placing it in the top 43.8%.
Is ZTE's Intrinsic Value: Projected FCF too high?
ZTE's current Intrinsic Value: Projected FCF is $2.08. The Hardware industry median Intrinsic Value: Projected FCF is 1.70. ZTE's value of $2.08 is 22.4% above this industry median. Based on the distribution chart, ZTE ranks #741 out of 1693 companies in the Hardware industry, which is above the industry midpoint. Overall, ZTE has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does ZTE's Intrinsic Value: Projected FCF compare to CSCO and MSI?
According to the Hardware industry distribution chart, ZTE ranks #741 out of 1693 companies for Intrinsic Value: Projected FCF. This puts ZTE in the upper half of its industry. The industry median Intrinsic Value: Projected FCF is 1.70. ZTE's value of $2.08 is 22.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Intrinsic Value: Projected FCF for a Hardware company?
The median Intrinsic Value: Projected FCF among Hardware companies is 1.70, based on 1,693 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: Projected FCF significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: Projected FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ZTE's current Intrinsic Value: Projected FCF of $2.08 is 22.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Intrinsic Value: Projected FCF mean?
A high Intrinsic Value: Projected FCF can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: Projected FCF is the stock value based on a projected free cash flow model. View historical data on ZTE and its competitors. For the Hardware industry, the median Intrinsic Value: Projected FCF is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ZTE's current Intrinsic Value: Projected FCF is $2.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ZTE stock overvalued right now?
Based on GuruFocus' analysis, ZTE (ZTCOF) is currently considered Fairly Valued. The stock's GF Value™ is $3.27, compared to a current price of $3.03 — trading 7.5% below its estimated fair value. The current Intrinsic Value: Projected FCF is $2.08 and 22.4% above the Hardware industry median of 1.70. ZTE's overall GF Score™ is 81/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Intrinsic Value: Projected FCF calculated?
Intrinsic Value: Projected FCF is calculated from a company's financial statements. For ZTE (ZTCOF), the current Intrinsic Value: Projected FCF is $2.08 as of Aug. 27, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is ZTE (ZTCOF) Overvalued in 2026?

Based on GuruFocus' analysis, ZTE stock appears to be undervalued. The current stock price of $3.03 is trading 7.5% below its estimated GF Value™ of $3.27. GuruFocus considers ZTE to be Fairly Valued.

Key valuation signals for ZTCOF:

  • Intrinsic Value: Projected FCF: $2.08
  • GF Value™: $3.27 vs. price of $3.03 (7.5% below fair value)
  • GF Score™: 81/100 with 6 warning signs
  • Industry Position: 22.4% above the Hardware median (#741 of 1693)

No single metric tells the full story. See the ZTCOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


ZTE Business Description

Address ZTE Plaza, Keji Road South, Hi-Tech Industrial Park, Nanshan District, Guangdong Province, Shenzhen, CHN, 518057
ZTE Corp is a provider of integrated telecommunications and IT solutions with a full range of end-to-end ICT products and solutions integrating design, development, production, sales, and services with a special focus on carriers networks, government and corporate business, and consumer business. It operates in three segments Carriers network, Consumer Business, and Government and Corporate Business. It generates a majority of its revenue from equipment supporting carriers' networks. It has a presence in the PRC, Asia, Africa, Europe, and the Americas. It generates the majority of its revenue from the PRC region.
81GF Score

Get the complete analysis for ZTCOF

Intrinsic Value: Projected FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$3.03
Price
$3.27
GF Value