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Activation Group Holdings (HKSE:09919) Intrinsic Value: Projected FCF : HK$2.04 (As of Jun. 08, 2024)


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What is Activation Group 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 (2024-06-08), Activation Group Holdings's Intrinsic Value: Projected FCF is HK$2.04. The stock price of Activation Group Holdings is HK$1.16. Therefore, Activation Group Holdings's Price-to-Intrinsic-Value-Projected-FCF of today is 0.6.

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

HKSE:09919' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.52   Med: 0.53   Max: 0.57
Current: 0.57

During the past 8 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Activation Group Holdings was 0.57. The lowest was 0.52. And the median was 0.53.

HKSE:09919's Price-to-Projected-FCF is ranked better than
69.89% of 611 companies
in the Media - Diversified industry
Industry Median: 0.89 vs HKSE:09919: 0.57

Activation Group Holdings Intrinsic Value: Projected FCF Historical Data

The historical data trend for Activation Group 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.

Activation Group Holdings Intrinsic Value: Projected FCF Chart

Activation Group Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial - - - 1.79 2.04

Activation Group Holdings Semi-Annual Data
Dec16 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 - - 1.79 - 2.04

Competitive Comparison of Activation Group Holdings's Intrinsic Value: Projected FCF

For the Advertising Agencies subindustry, Activation Group 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.


Activation Group Holdings's Price-to-Projected-FCF Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Activation Group Holdings's Price-to-Projected-FCF distribution charts can be found below:

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



Activation Group 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 Activation Group Holdings's Free Cash Flow(6 year avg) = HK$81.68.

Activation Group 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)
=(14.862653310476*81.679857142857+371.632*0.8)/739.645
=2.04

* 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.


Activation Group Holdings  (HKSE:09919) 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.

Activation Group 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
=1.16/2.0432572371387
=0.57

* 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.


Activation Group Holdings Intrinsic Value: Projected FCF Related Terms

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Activation Group Holdings (HKSE:09919) Business Description

Traded in Other Exchanges
N/A
Address
No. 399A Liu Zhou Road, 8th Floor, Hengdi Warehouse International Building, Xuhui District, Shanghai, CHN, 200235
Activation Group Holdings Ltd is an integrated marketing solutions provider. The company focuses on the provision of experiential marketing, digital and brand communication, and public relations services. Its operating segment includes Experiential marketing services, Digital and communication services and IP development. The company generates maximum revenue from Experiential marketing services. Geographically, it derives a majority of revenue from Mainland China and also has a presence in Hong Kong/Singapore.
Executives
Lau Kam Yiu 2101 Beneficial owner
Rays Capital Partners Limited 2102 Investment manager
Ruan David Ching Chi 2201 Interest of corporation controlled by you
Snow Lake China Master Fund, Ltd. 2101 Beneficial owner
Snow Lake China Offshore Fund, Ltd. 2201 Interest of corporation controlled by you
Snow Lake Management Llc 2201 Interest of corporation controlled by you
Snow Lake Management Lp 2102 Investment manager
Ma Sean 2201 Interest of corporation controlled by you
Ai De Zhong Xin Shang Hai Tou Zi Guan Li Qi Ye You Xian He Huo 2101 Beneficial owner
Low Wei Mun 2101 Beneficial owner
Chan Wai Bun 2101 Beneficial owner
Li Meixuan 2202 Interest of your spouse
Chung Wing Ting 2202 Interest of your spouse
Ng Bo Sing 2101 Beneficial owner
Act Partners Global Ltd. 2201 Interest of corporation controlled by you

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