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Econet Wireless Zimbabwe (XZIM:ECO.ZW) Intrinsic Value: Projected FCF : ZWL210.66 (As of May. 15, 2024)


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What is Econet Wireless Zimbabwe 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 (2024-05-15), Econet Wireless Zimbabwe's Intrinsic Value: Projected FCF is ZWL210.66. The stock price of Econet Wireless Zimbabwe is ZWL125.0047. Therefore, Econet Wireless Zimbabwe's Price-to-Intrinsic-Value-Projected-FCF of today is 0.6.

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

XZIM:ECO.ZW' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.59   Med: 1.12   Max: 1.3
Current: 0.59

During the past 8 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Econet Wireless Zimbabwe was 1.30. The lowest was 0.59. And the median was 1.12.

XZIM:ECO.ZW's Price-to-Projected-FCF is ranked better than
70.4% of 277 companies
in the Telecommunication Services industry
Industry Median: 0.94 vs XZIM:ECO.ZW: 0.59

Econet Wireless Zimbabwe Intrinsic Value: Projected FCF Historical Data

The historical data trend for Econet Wireless Zimbabwe'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.

Econet Wireless Zimbabwe Intrinsic Value: Projected FCF Chart

Econet Wireless Zimbabwe Annual Data
Trend Feb09 Feb11 Feb12 Feb19 Feb20 Feb21 Feb22 Feb23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial 1.11 - - 121.72 210.66

Econet Wireless Zimbabwe Semi-Annual Data
Feb11 Aug11 Feb12 Aug12 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23
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 - 121.72 - 210.66 -

Competitive Comparison of Econet Wireless Zimbabwe's Intrinsic Value: Projected FCF

For the Telecom Services subindustry, Econet Wireless Zimbabwe'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.


Econet Wireless Zimbabwe's Price-to-Projected-FCF Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Econet Wireless Zimbabwe's Price-to-Projected-FCF distribution charts can be found below:

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



Econet Wireless Zimbabwe 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 Econet Wireless Zimbabwe's Free Cash Flow(6 year avg) = ZWL15,959.59.

Econet Wireless Zimbabwe'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 (Feb23)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*15959.591285714+436814.128*0.8)/2380.158
=210.66

* 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.


Econet Wireless Zimbabwe  (XZIM:ECO.ZW) 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.

Econet Wireless Zimbabwe's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=125.0047/210.65501650222
=0.59

* 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.


Econet Wireless Zimbabwe Intrinsic Value: Projected FCF Related Terms

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Econet Wireless Zimbabwe (XZIM:ECO.ZW) Business Description

Traded in Other Exchanges
N/A
Address
2 Old Mutare Road, Econet Park, Msasa, Harare, ZWE
Econet Wireless Zimbabwe Ltd is a holding company. It operates in the following segments: Cellular Network Operations, which provides cellular network services Investments & Administrations, which is the investment vehicle. The Cellular Network Operations generate maximum revenue for the company. Geographically the company offers its services only in the Zimbabwe region.

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