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Hollysys Automation Technologies (Hollysys Automation Technologies) Intrinsic Value: Projected FCF : $25.69 (As of Apr. 26, 2024)


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What is Hollysys Automation Technologies 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), Hollysys Automation Technologies's Intrinsic Value: Projected FCF is $25.69. The stock price of Hollysys Automation Technologies is $24.52. Therefore, Hollysys Automation Technologies's Price-to-Intrinsic-Value-Projected-FCF of today is 1.0.

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

HOLI' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.39   Med: 0.87   Max: 2.1
Current: 0.95

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Hollysys Automation Technologies was 2.10. The lowest was 0.39. And the median was 0.87.

HOLI's Price-to-Projected-FCF is ranked better than
68.67% of 1899 companies
in the Industrial Products industry
Industry Median: 1.53 vs HOLI: 0.95

Hollysys Automation Technologies Intrinsic Value: Projected FCF Historical Data

The historical data trend for Hollysys Automation Technologies'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.

Hollysys Automation Technologies Intrinsic Value: Projected FCF Chart

Hollysys Automation Technologies Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.48 28.10 28.89 27.58 25.87

Hollysys Automation Technologies Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 27.08 28.47 25.93 25.87 25.69

Competitive Comparison of Hollysys Automation Technologies's Intrinsic Value: Projected FCF

For the Electrical Equipment & Parts subindustry, Hollysys Automation Technologies'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.


Hollysys Automation Technologies's Price-to-Projected-FCF Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Hollysys Automation Technologies's Price-to-Projected-FCF distribution charts can be found below:

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



Hollysys Automation Technologies 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 Hollysys Automation Technologies's Free Cash Flow(6 year avg) = $65.66.

Hollysys Automation Technologies'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 (Sep23)*0.8)/Shares Outstanding (Diluted Average)
=(9.7180950547477*65.66064+1199.767*0.8)/62.198
=25.69

* 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.


Hollysys Automation Technologies  (NAS:HOLI) 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.

Hollysys Automation Technologies's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=24.52/25.690696499495
=0.95

* 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.


Hollysys Automation Technologies Intrinsic Value: Projected FCF Related Terms

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Hollysys Automation Technologies (Hollysys Automation Technologies) Business Description

Traded in Other Exchanges
Address
No. 2 Disheng Middle Road, Beijing Economic-Technological Development Area, Beijing, CHN, 100176
Hollysys Automation Technologies Ltd is a China-based company that provides automation and control technologies and products. The company operates through three segments. Its IA segment supplies solutions including third-party hardware-centric products, proprietary software products, and others. The Rail segment supplies train control center and automation train protection to the rail and subway industries. The M&E segment consists of its two Southeast Asia-based subsidiaries that provide mechanical and electrical solutions. Hollysys Automation Technologies generates most of its sales from the Chinese domestic market.