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Ramsay Health Care (ASX:RHC) Intrinsic Value: Projected FCF : A$36.95 (As of May. 21, 2024)


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What is Ramsay Health Care 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 (2024-05-21), Ramsay Health Care's Intrinsic Value: Projected FCF is A$36.95. The stock price of Ramsay Health Care is A$48.96. Therefore, Ramsay Health Care's Price-to-Intrinsic-Value-Projected-FCF of today is 1.3.

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

ASX:RHC' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.33   Med: 2.06   Max: 2.94
Current: 1.33

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Ramsay Health Care was 2.94. The lowest was 1.33. And the median was 2.06.

ASX:RHC's Price-to-Projected-FCF is ranked worse than
52.24% of 312 companies
in the Healthcare Providers & Services industry
Industry Median: 1.31 vs ASX:RHC: 1.33

Ramsay Health Care Intrinsic Value: Projected FCF Historical Data

The historical data trend for Ramsay Health Care'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.

Ramsay Health Care Intrinsic Value: Projected FCF Chart

Ramsay Health Care Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 35.19 45.53 40.26 35.46 36.95

Ramsay Health Care 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 - 35.46 - 36.95 -

Competitive Comparison of Ramsay Health Care's Intrinsic Value: Projected FCF

For the Medical Care Facilities subindustry, Ramsay Health Care'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.


Ramsay Health Care's Price-to-Projected-FCF Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Ramsay Health Care's Price-to-Projected-FCF distribution charts can be found below:

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



Ramsay Health Care 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 Ramsay Health Care's Free Cash Flow(6 year avg) = A$528.60.

Ramsay Health Care'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 (Jun23)*0.8)/Shares Outstanding (Diluted Average)
=(10.407385931648*528.59685714286+4154.8*0.8)/238.862
=36.95

* 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.


Ramsay Health Care  (ASX:RHC) 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.

Ramsay Health Care's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=48.96/36.946653274869
=1.33

* 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.


Ramsay Health Care Intrinsic Value: Projected FCF Related Terms

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Ramsay Health Care (ASX:RHC) Business Description

Address
126 Phillip Street, Suite 18.03, Level 18, Deutsche Bank Place, Sydney, NSW, AUS, 2000
Ramsay Health Care is one of the largest private healthcare providers in the world, with over 460 facilities across 10 countries. The key markets in which it operates are Australia, France, the U.K., and Sweden. It is the largest private hospital group in each of these markets except for the U.K. where it ranks fifth. Ramsay Sante, which operates the European regions other than the U.K., is a 52.5%-owned subsidiary of Ramsay Health Care. The company typically earns about 60% of consolidated earnings in Australia and 30% in France. Ramsay Health Care undertakes both private and publicly funded healthcare.

Ramsay Health Care (ASX:RHC) Headlines

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