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Aarti Drugs (BOM:524348) Intrinsic Value: Projected FCF : ₹168.90 (As of Apr. 29, 2024)


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What is Aarti Drugs 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 (2024-04-29), Aarti Drugs's Intrinsic Value: Projected FCF is ₹168.90. The stock price of Aarti Drugs is ₹503.75. Therefore, Aarti Drugs's Price-to-Intrinsic-Value-Projected-FCF of today is 3.0.

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

BOM:524348' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.97   Med: 2.33   Max: 5.14
Current: 2.98

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Aarti Drugs was 5.14. The lowest was 0.97. And the median was 2.33.

BOM:524348's Price-to-Projected-FCF is ranked worse than
70.9% of 598 companies
in the Drug Manufacturers industry
Industry Median: 1.53 vs BOM:524348: 2.98

Aarti Drugs Intrinsic Value: Projected FCF Historical Data

The historical data trend for Aarti Drugs'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.

Aarti Drugs Intrinsic Value: Projected FCF Chart

Aarti Drugs Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 78.86 130.06 176.53 170.14 168.90

Aarti Drugs Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 - 168.90 - - -

Competitive Comparison of Aarti Drugs's Intrinsic Value: Projected FCF

For the Drug Manufacturers - Specialty & Generic subindustry, Aarti Drugs'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.


Aarti Drugs's Price-to-Projected-FCF Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Aarti Drugs's Price-to-Projected-FCF distribution charts can be found below:

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



Aarti Drugs 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 Aarti Drugs's Free Cash Flow(6 year avg) = ₹410.44.

Aarti Drugs'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 (Mar23)*0.8)/Shares Outstanding (Diluted Average)
=(14.862653310476*410.439+11924.347*0.8)/92.600
=168.90

* 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.


Aarti Drugs  (BOM:524348) 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.

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

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=503.75/168.89514213929
=2.98

* 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.


Aarti Drugs Intrinsic Value: Projected FCF Related Terms

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Aarti Drugs (BOM:524348) Business Description

Traded in Other Exchanges
Address
Road No. 29, Plot Number 109-D, Mahendra Industrial Estate, Ground Floor, Sion (East), Mumbai, MH, IND, 400 022
Aarti Drugs Ltd is a pharmaceutical company. It offers active pharmaceutical ingredients (APIs) in a range of therapeutic categories, such as anti-inflammatory, cardioprotectant, antibiotic, antidiabetic, and vitamins among others. The product offerings of the company comprise Aceclofenac, Celecoxib, Moxifloxacin, and others. The firm generates the majority of its revenue from India.

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