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IDP Education (ASX:IEL) Intrinsic Value: Projected FCF : A$5.59 (As of May. 04, 2024)


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What is IDP Education 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 (2024-05-04), IDP Education's Intrinsic Value: Projected FCF is A$5.59. The stock price of IDP Education is A$16.40. Therefore, IDP Education's Price-to-Intrinsic-Value-Projected-FCF of today is 2.9.

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

ASX:IEL' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 2.84   Med: 4.52   Max: 5.09
Current: 2.93

During the past 8 years, the highest Price-to-Intrinsic-Value-Projected-FCF of IDP Education was 5.09. The lowest was 2.84. And the median was 4.52.

ASX:IEL's Price-to-Projected-FCF is ranked worse than
87.42% of 151 companies
in the Education industry
Industry Median: 0.77 vs ASX:IEL: 2.93

IDP Education Intrinsic Value: Projected FCF Historical Data

The historical data trend for IDP Education'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.

IDP Education Intrinsic Value: Projected FCF Chart

IDP Education Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial - - - 4.68 5.59

IDP Education Semi-Annual Data
Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 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 - 4.68 - 5.59 -

Competitive Comparison of IDP Education's Intrinsic Value: Projected FCF

For the Education & Training Services subindustry, IDP Education'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.


IDP Education's Price-to-Projected-FCF Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, IDP Education's Price-to-Projected-FCF distribution charts can be found below:

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



IDP Education 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 IDP Education's Free Cash Flow(6 year avg) = A$77.07.

IDP Education'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 (Jun23)*0.8)/Shares Outstanding (Diluted Average)
=(14.862653310476*77.069+517.168*0.8)/278.756
=5.59

* 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.


IDP Education  (ASX:IEL) 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.

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

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=16.40/5.5933656243635
=2.93

* 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.


IDP Education Intrinsic Value: Projected FCF Related Terms

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IDP Education (ASX:IEL) Business Description

Traded in Other Exchanges
Address
697 Collins Street, Level 10, Docklands, VIC, AUS, 3008
IDP Education is a global leader in English language testing and student placement services, constituting 64% and 27% of fiscal 2022 group revenue, respectively. Additionally, IDP operates English language schools, organizes education events and delivers consultancy services to education institutions, which constitutes the remainder of group revenue. Originally established in Australia as an aid body for Southeast Asia, today IDP operates one of the world's most widely accepted English language tests and one of the world's largest student placement services businesses, predominantly connecting prospective migrants from India and China to Australia, Canada, and the United Kingdom.

IDP Education (ASX:IEL) Headlines

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