King Stone Energy Group Ltd (HKEX:663)

0.285 HKD +0.01 HKD ( +3.64% )
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King Stone Energy Group Ltd

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Oct 7, 2022.

Estimated DCF Value of one 663 stock is 0.307 HKD. Compared to the current market price of 0.285 HKD, the stock is Undervalued by 7%.

DCF Value
Base Case
0.307 HKD
Undervaluation 7%
DCF Value
Worst Case
Base Case
Best Case
DCF Value
Worst Case
Base Case
Best Case
DCF Value: 0.307 HKD
King Stone Energy Group Ltd Competitors:
DCF Valuation
EQT Corp
Tethys Petroleum Ltd
Genel Energy PLC
Pioneer Natural Resources Co
Gran Tierra Energy Inc
SandRidge Energy Inc
Surge Energy Inc
Selan Exploration Technology Ltd

Present Value Calculation

The first step in the DCF calculation process is to estimate the company's future free cash flow. Once free cash flow is forecasted, it is discounted at a risk-appropriate discount rate. The resulting value is the present value of the company's free cash flow. You can change any model inputs below.

Available Valuation Models
1 valuation model available
Alpha Spread
Updated on Oct 7, 2022
Default Valuation
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Model Settings
Operating Model
Discount Rate
Forecast Period
5 Years
Terminal Growth
Discount Rate
Terminal Growth
Growth Period
5 Years
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DCF Model
Base Case Scenario

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To view the process of deriving the DCF Value of one share from the estimated Present Value, see the DCF Value Calculation block.

DCF Value Calculation

Depending on which type of operating model is chosen (equity or whole firm valuation model), the resulting value is either the value of equity or the value of the entire firm. In the case of the latter, to move from the value of the firm to the value of equity, liabilities are subtracted and assets are added.

Capital Structure
From Present Value to DCF Value

Present Value 117M HKD
+ Cash & Equivalents 80.6M HKD
+ Investments 391k HKD
Firm Value 198M HKD
- Debt 8.4M HKD
- Minority Interest -174.1M HKD
Equity Value 364M HKD
/ Shares Outstanding 1.2B
663 DCF Value 0.307 HKD
Undervalued by 7%

To view the process of calculating the Present Value of King Stone Energy Group Ltd' future free cash flow, see the Present Value Calculation block.

Valuation Analysis

After the valuation process, in order to gain a deeper understanding of the relationship between risk and opportunity, it is useful to study the dynamic of company's valuation under various inputs to the DCF model in use.

DCF Financials
Financials used in DCF Calculation

171M 449M
Operating Income
-251.4M 135M
-233.2M 109M

Sensitivity Analysis
DCF Value Sensitivity Analysis

See Also

Similar Stocks
What is the DCF value of one 663 stock?

Estimated DCF Value of one 663 stock is 0.307 HKD. Compared to the current market price of 0.285 HKD, the stock is Undervalued by 7%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Using the DCF Operating Model we project King Stone Energy Group Ltd's future free cash flow and discount it at a selected discount rate to calculate its Present Value (117M HKD).

2. DCF Value Calculation. We use the company's capital structure to calculate the total Equity Value based on the previously computed Present Value of the free cash flow. Dividing the Equity Value by the number of shares outstanding gives us the DCF Value of 0.307 HKD per one 663 share.