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MMG (HKSE:01208) Intrinsic Value: Projected FCF : HK$11.96 (As of May. 02, 2024)


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What is MMG 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), MMG's Intrinsic Value: Projected FCF is HK$11.96. The stock price of MMG is HK$3.65. Therefore, MMG's Price-to-Intrinsic-Value-Projected-FCF of today is 0.3.

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

HKSE:01208' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.18   Med: 0.84   Max: 6.47
Current: 0.31

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of MMG was 6.47. The lowest was 0.18. And the median was 0.84.

HKSE:01208's Price-to-Projected-FCF is ranked better than
93.07% of 592 companies
in the Metals & Mining industry
Industry Median: 1.325 vs HKSE:01208: 0.31

MMG Intrinsic Value: Projected FCF Historical Data

The historical data trend for MMG'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.

MMG Intrinsic Value: Projected FCF Chart

MMG 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 2.76 3.87 7.49 11.30 11.96

MMG 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 7.49 - 11.30 - 11.96

Competitive Comparison of MMG's Intrinsic Value: Projected FCF

For the Copper subindustry, MMG'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.


MMG's Price-to-Projected-FCF Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, MMG's Price-to-Projected-FCF distribution charts can be found below:

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



MMG 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 MMG's Free Cash Flow(6 year avg) = HK$8,772.85.

MMG'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)
=(10.336311950585*8772.8531428571+16583.329*0.8)/8688.198
=11.96

* 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.


MMG  (HKSE:01208) 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.

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

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=3.65/11.964001048462
=0.31

* 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.


MMG Intrinsic Value: Projected FCF Related Terms

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MMG (HKSE:01208) Business Description

Industry
Traded in Other Exchanges
Address
79 Chatham Road South, Unit 1208, 12th Floor, China Minmetals Tower, Tsimshatsui, Kowloon, Hong Kong, HKG
MMG Ltd is engaged in the exploration, development, and mining of zinc, copper, gold, silver, and lead deposits around the world. The group has five reportable operating segments namely Dugald River, Kinsevere, Rosebery, Las Bambas, and others. Las Bambas mine is an open-pit, scalable, long-life copper and molybdenum mining operation; Kinsevere is an open-pit copper mining operation located in the Haut-Katanga Province; Dugald River mine is an underground zinc mining operation located near Cloncurry in North West Queensland; Rosebery is an underground polymetallic base metal mining operation located on Tasmania's west coast; and Other Includes corporate entities in the Group. The majority is from the Las Bambas segment. The key revenue by metal is derived from Copper.

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