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Neo-Neon Holdings (HKSE:01868) Intrinsic Value: Projected FCF : HK$0.58 (As of May. 15, 2024)


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What is Neo-Neon Holdings 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 (2024-05-15), Neo-Neon Holdings's Intrinsic Value: Projected FCF is HK$0.58. The stock price of Neo-Neon Holdings is HK$0.405. Therefore, Neo-Neon Holdings's Price-to-Intrinsic-Value-Projected-FCF of today is 0.7.

The historical rank and industry rank for Neo-Neon Holdings's Intrinsic Value: Projected FCF or its related term are showing as below:

HKSE:01868' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.69   Med: 2.1   Max: 2.78
Current: 0.7

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Neo-Neon Holdings was 2.78. The lowest was 0.69. And the median was 2.10.

HKSE:01868's Price-to-Projected-FCF is ranked better than
81.13% of 1913 companies
in the Industrial Products industry
Industry Median: 1.57 vs HKSE:01868: 0.70

Neo-Neon Holdings Intrinsic Value: Projected FCF Historical Data

The historical data trend for Neo-Neon Holdings'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.

Neo-Neon Holdings Intrinsic Value: Projected FCF Chart

Neo-Neon Holdings Annual Data
Trend Mar14 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 0.28 0.48 0.35 0.48 0.58

Neo-Neon Holdings Semi-Annual Data
Mar14 Sep14 Jun15 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 Premium Member Only Premium Member Only Premium Member Only 0.35 - 0.48 - 0.58

Competitive Comparison of Neo-Neon Holdings's Intrinsic Value: Projected FCF

For the Electrical Equipment & Parts subindustry, Neo-Neon Holdings'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.


Neo-Neon Holdings's Price-to-Projected-FCF Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Neo-Neon Holdings's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Neo-Neon Holdings's Price-to-Projected-FCF falls into.



Neo-Neon Holdings 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 Neo-Neon Holdings's Free Cash Flow(6 year avg) = HK$-14.86.

Neo-Neon Holdings'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)
=(9.5203515959648*-14.858714285714+1698.609*0.8)/2094.465
=0.58

* 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.


Neo-Neon Holdings  (HKSE:01868) 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.

Neo-Neon Holdings's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=0.405/0.58125918348409
=0.70

* 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.


Neo-Neon Holdings Intrinsic Value: Projected FCF Related Terms

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Neo-Neon Holdings (HKSE:01868) Business Description

Traded in Other Exchanges
Address
188 Des Voeux Road Central, Unit 2101, 21st Floor, Golden Centre, Hong Kong, HKG
Neo-Neon Holdings Ltd is a manufacturer and distributor of LED decorative lighting products. The company's product portfolio is divided into LED decorative lighting, Commercial lighting, Professional lighting, Professional architectural lighting, Industrial lighting, Landscape lighting, and other products. Its segments include the PRC lighting segment, which consists of research and development, manufacture of lighting products in China, and distribution of lighting products in China and overseas; and the USA lighting segment consists of the provision of lighting solutions and trading of lighting products in the USA. Its geographical segments include North America, which generates the vast majority of the company's revenue; Europe; The PRC; Asia (excluding the PRC); and Other countries.

Neo-Neon Holdings (HKSE:01868) Headlines

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