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China Telecom (China Telecom) Intrinsic Value: Projected FCF : $56.79 (As of Apr. 26, 2024)


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What is China Telecom 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 (2024-04-26), China Telecom's Intrinsic Value: Projected FCF is $56.79. The stock price of China Telecom is $26.45. Therefore, China Telecom's Price-to-Intrinsic-Value-Projected-FCF of today is 0.5.

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

CHA' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.47   Med: 0.9   Max: 1.27
Current: 0.47

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of China Telecom was 1.27. The lowest was 0.47. And the median was 0.90.

CHA's Price-to-Projected-FCF is ranked better than
52.67% of 281 companies
in the Telecommunication Services industry
Industry Median: 1.01 vs CHA: 0.47

China Telecom Intrinsic Value: Projected FCF Historical Data

The historical data trend for China Telecom'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.

China Telecom Intrinsic Value: Projected FCF Chart

China Telecom 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 74.81 - - - -

China Telecom Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 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 - - - - -

Competitive Comparison of China Telecom's Intrinsic Value: Projected FCF

For the Telecom Services subindustry, China Telecom'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.


China Telecom's Price-to-Projected-FCF Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, China Telecom's Price-to-Projected-FCF distribution charts can be found below:

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



China Telecom 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 China Telecom's Free Cash Flow(6 year avg) = $939.57.

China Telecom'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*939.56592+0/0.8)/809.32
=11.05

* 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.


China Telecom  (NYSE:CHA) 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.

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

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=26.45/11.052485921497
=2.39

* 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.


China Telecom Intrinsic Value: Projected FCF Related Terms

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China Telecom (China Telecom) Business Description

Traded in Other Exchanges
Address
31 Jinrong Street, Xicheng District, Beijing, CHN, 100033
China Telecom is the largest fixed-line operator in China, originally covering 21 southern provinces. It has 102 million fixed-line subscribers, 189 million broadband customers, and 406 million wireless subscribers, having overtaken China Unicom to become the second-largest wireless operator in China behind China Mobile. The firm is increasing its cross-selling of products and seeing strong growth from industrial digitization services, such as internet data centers and cloud computing. Its internet data center business is already the largest in China, with a plan to have 560,000 cabinets by end 2023.

China Telecom (China Telecom) Headlines