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IPH (ASX:IPH) Intrinsic Value: Projected FCF : A$6.98 (As of Oct. 31, 2024)


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What is IPH 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 (2024-10-31), IPH's Intrinsic Value: Projected FCF is A$6.98. The stock price of IPH is A$5.37. Therefore, IPH's Price-to-Intrinsic-Value-Projected-FCF of today is 0.8.

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

ASX:IPH' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.77   Med: 1.43   Max: 2.61
Current: 0.77

During the past 10 years, the highest Price-to-Intrinsic-Value-Projected-FCF of IPH was 2.61. The lowest was 0.77. And the median was 1.43.

ASX:IPH's Price-to-Projected-FCF is ranked better than
57.7% of 669 companies
in the Business Services industry
Industry Median: 0.91 vs ASX:IPH: 0.77

IPH Intrinsic Value: Projected FCF Historical Data

The historical data trend for IPH'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.

IPH Intrinsic Value: Projected FCF Chart

IPH Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.07 5.35 5.86 6.60 6.98

IPH Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 - 6.60 - 6.98

Competitive Comparison of IPH's Intrinsic Value: Projected FCF

For the Specialty Business Services subindustry, IPH'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.


IPH's Price-to-Projected-FCF Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, IPH's Price-to-Projected-FCF distribution charts can be found below:

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



IPH 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 IPH's Free Cash Flow(6 year avg) = A$80.39.

IPH'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 (Jun24)*0.8)/Shares Outstanding (Diluted Average)
=(14.862653310476*80.388+634.3*0.8)/243.785
=6.98

* 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.


IPH  (ASX:IPH) 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.

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

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=5.37/6.9824598491398
=0.77

* 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.


IPH Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of IPH's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


IPH Business Description

Industry
Traded in Other Exchanges
Address
201 Sussex Street, Level 24, Tower 2, Darling Park, Sydney, NSW, AUS, 2000
IPH provides intellectual property services through its subsidiaries: Spruson and Ferguson, Smart & Biggar, Robic, Pizzeys, Griffith Hack, Applied Marks, and AJ Park. These services include patent filing, prosecution, enforcement, management, design, trademarks, and more. The company's diverse client base consists of multinationals, public sector research organizations, and local businesses across various industries like healthcare, finance, engineering, and technology. Revenue streams mainly consist of professional fees (fixed) and volume-based fees (linked to the quantity of work performed). About 70% of revenue is derived from pre-existing work in the system, while 30% comes from new patent applications.

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