Aurizon Holdings Ltd
ASX:AZJ

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Aurizon Holdings Ltd
ASX:AZJ
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Price: 4.155 AUD -0.12% Market Closed
Market Cap: AU$7B

EV/FCFF

14.4
Current
4%
More Expensive
vs 3-y average of 13.8

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
14.4
=
Enterprise Value
AU$11.1B
/
Free Cash Flow to Firm
AU$770m

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
14.4
=
Enterprise Value
AU$11.1B
/
Free Cash Flow to Firm
AU$770m

Valuation Scenarios

Aurizon Holdings Ltd is trading above its 3-year average

If EV/FCFF returns to its 3-Year Average (13.8), the stock would be worth AU$3.98 (4% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-9%
Maximum Upside
+46%
Average Upside
7%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 14.4 AU$4.16
0%
3-Year Average 13.8 AU$3.98
-4%
5-Year Average 13.1 AU$3.78
-9%
Industry Average 13.9 AU$4
-4%
Country Average 21 AU$6.06
+46%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close
Market Cap EV/FCFF P/E
AU
Aurizon Holdings Ltd
ASX:AZJ
7.1B AUD 14.4 23.4
US
Union Pacific Corp
NYSE:UNP
159.6B USD 33.1 22.1
US
CSX Corp
NASDAQ:CSX
84.5B USD 53.3 27.7
CA
Canadian Pacific Railway Ltd
TSX:CP
106.6B CAD 58.6 25.6
US
Norfolk Southern Corp
NYSE:NSC
71.6B USD 40.1 24.9
CA
Canadian National Railway Co
TSX:CNR
96.1B CAD 34 20.4
CN
Beijing-Shanghai High Speed Railway Co Ltd
SSE:601816
238.8B CNY 13.3 18.1
HK
MTR Corp Ltd
HKEX:66
214.6B HKD -25.4 53.8
US
Kansas City Southern
LSE:0JQ4
4.2B USD 12.4 43.3
JP
Central Japan Railway Co
TSE:9022
3.9T JPY 30.9 7.2
JP
East Japan Railway Co
TSE:9020
3.9T JPY -43.2 17.2

Market Distribution

In line with most companies in Australia
Percentile
33rd
Based on 1 159 companies
33rd percentile
14.4
Low
0 — 13.2
Typical Range
13.2 — 32.6
High
32.6 —
Distribution Statistics
Australia
Min 0
30th Percentile 13.2
Median 21
70th Percentile 32.6
Max 583 153.2

Aurizon Holdings Ltd
Glance View

Aurizon Holdings Ltd, Australia's largest rail freight operator, is the linchpin of the country’s transportation network, weaving essential routes across the vast Australian landscape. Established from the former government entity, QR National, Aurizon has become synonymous with moving Australia's abundant natural resources. Its primary business involves the transportation of coal from mines in the resource-rich hinterlands of Queensland and New South Wales to bustling coastal ports. By forming strategic partnerships with key mining companies, Aurizon ensures these commodities are efficiently transferred from the sprawling outback to global markets. The company operates both track infrastructure and freight services, generating revenue through access fees charged to operators using its extensive network, as well as from direct haulage services. Apart from coal, Aurizon’s diversified freight portfolio includes iron ore, agricultural goods, and industrial products, highlighting its pivotal role in connecting various sectors of the Australian economy. The company has invested heavily in modernizing its locomotive fleet and rail infrastructure, enabling it to enhance operational efficiency and reliability. These strategic advancements help Aurizon maintain a competitive advantage in the sector. Additionally, its network expansion and technology integration are critical in optimizing transport operations, ultimately contributing to consistent revenue streams. While environmental concerns and fluctuating commodity prices present challenges, Aurizon’s expertise in logistics and keen focus on sustainability initiatives continue to solidify its position as a leader in Australia's rail freight industry.

AZJ Intrinsic Value
4.52 AUD
Undervaluation 8%
Intrinsic Value
Price AU$4.155
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