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Houlihan Lokey (Houlihan Lokey) Intrinsic Value: Projected FCF : $94.17 (As of Apr. 28, 2024)


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What is Houlihan Lokey 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 (2024-04-28), Houlihan Lokey's Intrinsic Value: Projected FCF is $94.17. The stock price of Houlihan Lokey is $126.70. Therefore, Houlihan Lokey's Price-to-Intrinsic-Value-Projected-FCF of today is 1.4.

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

HLI' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.85   Med: 1.11   Max: 1.38
Current: 1.35

During the past 10 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Houlihan Lokey was 1.38. The lowest was 0.85. And the median was 1.11.

HLI's Price-to-Projected-FCF is ranked worse than
57.36% of 516 companies
in the Capital Markets industry
Industry Median: 1.07 vs HLI: 1.35

Houlihan Lokey Intrinsic Value: Projected FCF Historical Data

The historical data trend for Houlihan Lokey'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.

Houlihan Lokey Intrinsic Value: Projected FCF Chart

Houlihan Lokey 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 - 38.93 71.46 98.25 103.15

Houlihan Lokey 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 89.11 103.15 87.45 94.18 94.17

Competitive Comparison of Houlihan Lokey's Intrinsic Value: Projected FCF

For the Capital Markets subindustry, Houlihan Lokey'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.


Houlihan Lokey's Price-to-Projected-FCF Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Houlihan Lokey's Price-to-Projected-FCF distribution charts can be found below:

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



Houlihan Lokey 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 Houlihan Lokey's Free Cash Flow(6 year avg) = $334.88.

Houlihan Lokey'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 (Dec23)*0.8)/Shares Outstanding (Diluted Average)
=(14.862653310476*334.88464+1769.303*0.8)/67.886
=94.17

* 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.


Houlihan Lokey  (NYSE:HLI) 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.

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

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=126.70/94.168410325008
=1.35

* 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.


Houlihan Lokey Intrinsic Value: Projected FCF Related Terms

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Houlihan Lokey (Houlihan Lokey) Business Description

Traded in Other Exchanges
Address
10250 Constellation Boulevard, 5th Floor, Los Angeles, CA, USA, 90067
Houlihan Lokey Inc is an investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, valuation, and strategic consulting. The firm serves corporations, institutions, and governments worldwide with offices in the United States, Europe, and the Asia-Pacific region. The company operates in three segments. In the Corporate Finance business segment, it provides M&A and capital markets advisory services. Through the Financial Restructuring business segment, the company advises on some of the complex restructurings around the world. Financial and Valuation Advisory Services business segment provides valuation and financial opinion, and financial and strategic consulting practices in the United States.
Executives
Irwin Gold director, 10 percent owner, officer: EXECUTIVE CHAIRMAN
Christopher M Crain officer: GENERAL COUNSEL C/O HOULIHAN LOKEY, INC., 10250 CONSTELLATION BLVD., 5TH FL, LOS ANGELES CA 90067
J Lindsey Alley officer: CHIEF FINANCIAL OFFICER C/O HOULIHAN LOKEY, INC., 10250 CONSTELLATION BLVD., 5TH FL, LOS ANGELES CA 90067
Scott L Beiser director, officer: CHIEF EXECUTIVE OFFICER C/O HOULIHAN LOKEY, INC., 10250 CONSTELLATION BLVD., 5TH FL, LOS ANGELES CA 90067
Robert A Schriesheim director 3333 BEVERLY ROAD, HOFFMAN ESTATES IL 60179
Todd J Carter director 700 CANAL STREET, THIRD FLOOR, STAMFORD CT 06902
Paul Andrew Zuber director C/O HOULIHAN LOKEY, INC., 10250 CONSTELLATION BLVD., 5TH FLOOR, LOS ANGELES CA 90067
Scott Joseph Adelson director, officer: CO-PRESIDENT 1930 CENTURY PARK WEST, LOS ANGELES CA 90067
Ekpedeme M Bassey director C/O HOULIHAN LOKEY, INC., 10250 CONSTELLATION BLVD., 5TH FLOOR, LOS ANGELES CA 90067
Cyrus D. Walker director C/O MARIPOSA CAPITAL, LLC, 500 SOUTH POINTE DRIVE, SUITE 240, MIAMI BEACH FL 33139
David A Preiser director, officer: CO-PRESIDENT
Gillian Beth Zucker director C/O HOULIHAN LOKEY, INC., 10250 CONSTELLATION BOULEVARD, 5TH FLOOR, LOS ANGELES AR 90067
Orix Hlhz Holding Llc 10 percent owner 1717 MAIN STREET, SUITE 900, DALLAS TX 75201
Orix Corp 10 percent owner WORLD TRADE CENTER BLDG., SOUTH TOWER, 2-4-1 HAMAMATSU-CHO, MINATO-KU, TOKYO M0 105 5135
Jacqueline B Kosecoff director 5960 HEISLEY ROAD, MENTOR OH 44060