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KONE Oyj (KONE Oyj) Intrinsic Value: Projected FCF : $23.64 (As of May. 07, 2024)


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What is KONE Oyj 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 (2024-05-07), KONE Oyj's Intrinsic Value: Projected FCF is $23.64. The stock price of KONE Oyj is $49.55. Therefore, KONE Oyj's Price-to-Intrinsic-Value-Projected-FCF of today is 2.1.

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

KNYJF' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.19   Med: 1.74   Max: 2.79
Current: 2.1

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of KONE Oyj was 2.79. The lowest was 1.19. And the median was 1.74.

KNYJF's Price-to-Projected-FCF is ranked worse than
56.9% of 1912 companies
in the Industrial Products industry
Industry Median: 1.58 vs KNYJF: 2.10

KONE Oyj Intrinsic Value: Projected FCF Historical Data

The historical data trend for KONE Oyj'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.

KONE Oyj Intrinsic Value: Projected FCF Chart

KONE Oyj 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 30.96 34.23 32.12 27.45 27.50

KONE Oyj 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 26.50 25.65 25.88 27.50 26.98

Competitive Comparison of KONE Oyj's Intrinsic Value: Projected FCF

For the Specialty Industrial Machinery subindustry, KONE Oyj'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.


KONE Oyj's Price-to-Projected-FCF Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, KONE Oyj's Price-to-Projected-FCF distribution charts can be found below:

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



KONE Oyj 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 KONE Oyj's Free Cash Flow(6 year avg) = $1,331.28.

KONE Oyj'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)
=(9.5203515959648*1331.28112+2236.413*0.8)/520.513
=27.79

* 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.


KONE Oyj  (OTCPK:KNYJF) 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.

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

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=49.55/27.786807890427
=1.78

* 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.


KONE Oyj Intrinsic Value: Projected FCF Related Terms

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KONE Oyj (KONE Oyj) Business Description

Industry
Address
Keilasatama 3, P.O. Box 7, Espoo, FIN, FI-02150
Kone is a global top-four supplier of elevators and escalators. Kone began producing elevators in Finland in 1918 and today generates revenue in three ways: selling new elevators and escalators, modernizing old equipment, and servicing its installed base. Most of the company's profit comes from the last activity, where contracts are rolled over annually with built-in price increases. The bulk of Kone's business is in elevators, which are more numerous globally than escalators. Its business model is similar to its closest competitors Otis, Schindler, and TK Elevator.

KONE Oyj (KONE Oyj) Headlines

From GuruFocus

KONE wins Elevator World Project of the Year award

By PRNewswire PRNewswire 01-21-2022

Bernard Horn Comments on Kone

By Holly LaFon Holly LaFon 07-18-2019

KONE Oyj Stock Appears To Be Modestly Overvalued

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Urbem's 'Wonderful Business' Series: KONE

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Collect a 4% Dividend With Kone

By Holmes Osborne, CFA 05-19-2022

KONE awarded new contract with City of Kansas City

By PRNewswire PRNewswire 01-15-2019

KONE Acquires Eltec Elevator Ltd.

By PRNewswire PRNewswire 12-03-2018