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Offshore Oil Engineering Co (SHSE:600583) Intrinsic Value: Projected FCF : ¥11.17 (As of Apr. 28, 2024)


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What is Offshore Oil Engineering Co 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 (2024-04-28), Offshore Oil Engineering Co's Intrinsic Value: Projected FCF is ¥11.17. The stock price of Offshore Oil Engineering Co is ¥6.53. Therefore, Offshore Oil Engineering Co's Price-to-Intrinsic-Value-Projected-FCF of today is 0.6.

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

SHSE:600583' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.58   Med: 0.9   Max: 3.15
Current: 0.58

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Offshore Oil Engineering Co was 3.15. The lowest was 0.58. And the median was 0.90.

SHSE:600583's Price-to-Projected-FCF is ranked better than
69.51% of 679 companies
in the Oil & Gas industry
Industry Median: 0.86 vs SHSE:600583: 0.58

Offshore Oil Engineering Co Intrinsic Value: Projected FCF Historical Data

The historical data trend for Offshore Oil Engineering Co'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.

Offshore Oil Engineering Co Intrinsic Value: Projected FCF Chart

Offshore Oil Engineering Co 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 9.58 4.27 5.55 6.82 9.64

Offshore Oil Engineering Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 6.31 8.21 10.61 9.64 11.17

Competitive Comparison of Offshore Oil Engineering Co's Intrinsic Value: Projected FCF

For the Oil & Gas Equipment & Services subindustry, Offshore Oil Engineering Co'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.


Offshore Oil Engineering Co's Price-to-Projected-FCF Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Offshore Oil Engineering Co's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Offshore Oil Engineering Co's Price-to-Projected-FCF falls into.



Offshore Oil Engineering Co 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 Offshore Oil Engineering Co's Free Cash Flow(6 year avg) = ¥1,884.15.

Offshore Oil Engineering Co'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 (Mar24)*0.8)/Shares Outstanding (Diluted Average)
=(14.862653310476*1884.15184+25269.799*0.8)/4318.597
=11.17

* 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.


Offshore Oil Engineering Co  (SHSE:600583) 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.

Offshore Oil Engineering Co's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=6.53/11.165509257339
=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.


Offshore Oil Engineering Co Intrinsic Value: Projected FCF Related Terms

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Offshore Oil Engineering Co (SHSE:600583) Business Description

Traded in Other Exchanges
N/A
Address
No. 199, Haibin 15 Road, TianjinPort Free Trade Zone, Tianjin, CHN, 300461
Offshore Oil Engineering Co Ltd operates as an engineering design, procurement, construction, and installation (EPCI) company primarily for the oil and natural gas industry in China and internationally. The company provides technical services, subsea pipe maintenance, and other services for offshore oil underwater engineering; oil-gas field development and repair services; and consulting services for deep-sea engineering.

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