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Shougang Fushan Resources Group (HKSE:00639) Intrinsic Value: Projected FCF : HK$8.67 (As of May. 02, 2024)


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What is Shougang Fushan Resources Group 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 (2024-05-02), Shougang Fushan Resources Group's Intrinsic Value: Projected FCF is HK$8.67. The stock price of Shougang Fushan Resources Group is HK$2.87. Therefore, Shougang Fushan Resources Group's Price-to-Intrinsic-Value-Projected-FCF of today is 0.3.

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

HKSE:00639' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.21   Med: 0.37   Max: 0.49
Current: 0.33

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Shougang Fushan Resources Group was 0.49. The lowest was 0.21. And the median was 0.37.

HKSE:00639's Price-to-Projected-FCF is ranked better than
84.14% of 473 companies
in the Steel industry
Industry Median: 0.72 vs HKSE:00639: 0.33

Shougang Fushan Resources Group Intrinsic Value: Projected FCF Historical Data

The historical data trend for Shougang Fushan Resources Group'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.

Shougang Fushan Resources Group Intrinsic Value: Projected FCF Chart

Shougang Fushan Resources Group Annual Data
Trend Dec14 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 3.78 3.71 5.86 6.99 8.67

Shougang Fushan Resources Group Semi-Annual Data
Jun14 Dec14 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 5.86 - 6.99 - 8.67

Competitive Comparison of Shougang Fushan Resources Group's Intrinsic Value: Projected FCF

For the Coking Coal subindustry, Shougang Fushan Resources Group'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.


Shougang Fushan Resources Group's Price-to-Projected-FCF Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Shougang Fushan Resources Group's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Shougang Fushan Resources Group's Price-to-Projected-FCF falls into.



Shougang Fushan Resources Group 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 Shougang Fushan Resources Group's Free Cash Flow(6 year avg) = HK$2,048.86.

Shougang Fushan Resources Group'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*2048.8627142857+16281.846*0.8)/5016.906
=8.67

* 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.


Shougang Fushan Resources Group  (HKSE:00639) 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.

Shougang Fushan Resources Group's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=2.87/8.6661007806782
=0.33

* 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.


Shougang Fushan Resources Group Intrinsic Value: Projected FCF Related Terms

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Shougang Fushan Resources Group (HKSE:00639) Business Description

Traded in Other Exchanges
Address
56 Gloucester Road, 6th Floor, Bank of East Asia Harbour View Centre, Wanchai, Hong Kong, HKG
Shougang Fushan Resources Group Ltd is engaged in coking coal mining, production and sales of coking coal products in the PRC. It derives revenue from the sale of clean coking coal and raw coking coal. The group has three operating coking coal mines and three coal preparation plants. The group has a business presence in the PRC and Hong Kong.

Shougang Fushan Resources Group (HKSE:00639) Headlines

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