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ReTo Eco-Solutions (ReTo Eco-Solutions) Intrinsic Value: Projected FCF : $-606.55 (As of Jun. 10, 2024)


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What is ReTo Eco-Solutions 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 (2024-06-10), ReTo Eco-Solutions's Intrinsic Value: Projected FCF is $-606.55. The stock price of ReTo Eco-Solutions is $2.95. Therefore, ReTo Eco-Solutions's Price-to-Intrinsic-Value-Projected-FCF of today is 0.0.

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

RETO's Price-to-Projected-FCF is not ranked *
in the Building Materials industry.
Industry Median: 0.84
* Ranked among companies with meaningful Price-to-Projected-FCF only.

ReTo Eco-Solutions Intrinsic Value: Projected FCF Historical Data

The historical data trend for ReTo Eco-Solutions'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.

ReTo Eco-Solutions Intrinsic Value: Projected FCF Chart

ReTo Eco-Solutions Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only - - -78.22 -109.05 -606.55

ReTo Eco-Solutions Semi-Annual Data
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 -78.22 - -109.05 - -606.55

Competitive Comparison of ReTo Eco-Solutions's Intrinsic Value: Projected FCF

For the Building Materials subindustry, ReTo Eco-Solutions'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.


ReTo Eco-Solutions's Price-to-Projected-FCF Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, ReTo Eco-Solutions's Price-to-Projected-FCF distribution charts can be found below:

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



ReTo Eco-Solutions 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 ReTo Eco-Solutions's Free Cash Flow(6 year avg) = $-5.46.

ReTo Eco-Solutions'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)
=(9.5203515959648*-5.4628571428571+4.355*0.8)/0.080
=-606.55

* 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.


ReTo Eco-Solutions  (NAS:RETO) 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.

ReTo Eco-Solutions's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=2.95/-606.5540089816
=

* 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.


ReTo Eco-Solutions Intrinsic Value: Projected FCF Related Terms

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ReTo Eco-Solutions (ReTo Eco-Solutions) Business Description

Traded in Other Exchanges
N/A
Address
C/o Beijing REIT Technology Development Co., Ltd., X-702, Runfengdeshangyuan, 60 Anli Road, Chaoyang District, Beijing, CHN, 100101
ReTo Eco-Solutions Inc is a manufacturer and distributor of eco-friendly construction materials and fly-ash, as well as equipment used to produce these eco-friendly construction materials. The company engaged in providing consultation, design, project implementation and construction of urban ecological environments for capturing, controlling and re-using rainwater. It operates through four segments namely Machinery and Equipment sales, Construction materials sales, Municipal Construction Projects, and Technology Consulting and other services. The company earns its revenue from Machinery and Equipment sales segment. Geographically, it derives a majority of its revenue from China.