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Commonwealth Bank of Australia (Commonwealth Bank of Australia) Intrinsic Value: Projected FCF : $72.65 (As of Apr. 28, 2024)


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What is Commonwealth Bank of Australia 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 (2024-04-28), Commonwealth Bank of Australia's Intrinsic Value: Projected FCF is $72.65. The stock price of Commonwealth Bank of Australia is $74.088. Therefore, Commonwealth Bank of Australia's Price-to-Intrinsic-Value-Projected-FCF of today is 0.0.

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

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Commonwealth Bank of Australia was 6.05. The lowest was 0.81. And the median was 1.72.

CMWAY's Price-to-Projected-FCF is not ranked *
in the Banks industry.
Industry Median: 0.44
* Ranked among companies with meaningful Price-to-Projected-FCF only.

Commonwealth Bank of Australia Intrinsic Value: Projected FCF Historical Data

The historical data trend for Commonwealth Bank of Australia'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.

Commonwealth Bank of Australia Intrinsic Value: Projected FCF Chart

Commonwealth Bank of Australia 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 32.69 48.03 72.90 76.74 73.99

Commonwealth Bank of Australia 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 - 76.74 - 73.99 -

Competitive Comparison of Commonwealth Bank of Australia's Intrinsic Value: Projected FCF

For the Banks - Diversified subindustry, Commonwealth Bank of Australia'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.


Commonwealth Bank of Australia's Price-to-Projected-FCF Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Commonwealth Bank of Australia's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Commonwealth Bank of Australia's Price-to-Projected-FCF falls into.



Commonwealth Bank of Australia 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 Commonwealth Bank of Australia's Free Cash Flow(6 year avg) = $10,773.71.

Commonwealth Bank of Australia'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)
=(9.5203515959648*10773.707+48322.148*0.8)/1800.000
=78.46

* 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.


Commonwealth Bank of Australia  (OTCPK:CMWAY) 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.

Commonwealth Bank of Australia's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=74.088/78.459553906615
=0.94

* 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.


Commonwealth Bank of Australia Intrinsic Value: Projected FCF Related Terms

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Commonwealth Bank of Australia (Commonwealth Bank of Australia) Business Description

Address
11 Harbour Street, Commonwealth Bank Place South, Level 1, Sydney, NSW, AUS, 2000
Commonwealth Bank is Australia's largest bank with operations spanning Australia, New Zealand, and Asia. Its core business is the provision of retail, business, and institutional banking services. The bank has emphasized its focus on banking in recent years with a numbers of asset divestments in wealth management and insurance.

Commonwealth Bank of Australia (Commonwealth Bank of Australia) Headlines

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