Orica Ltd
ASX:ORI

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Orica Ltd
ASX:ORI
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Price: 21.245 AUD 1.12% Market Closed
Market Cap: AU$9.9B

P/FCFE

11.1
Current
17%
Cheaper
vs 3-y average of 13.4

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
11.1
=
Market Cap
AU$11.3B
/
Free Cash Flow to Equity
AU$900.2m

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
11.1
=
Market Cap
AU$11.3B
/
Free Cash Flow to Equity
AU$900.2m

Valuation Scenarios

Orica Ltd is trading below its 3-year average

If P/FCFE returns to its 3-Year Average (13.4), the stock would be worth AU$25.74 (21% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+63%
Average Upside
31%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 11.1 AU$21.25
0%
3-Year Average 13.4 AU$25.74
+21%
5-Year Average 13 AU$24.95
+17%
Industry Average 13.6 AU$26.04
+23%
Country Average 18.1 AU$34.73
+63%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close
P/E Multiple
Earnings Growth PEG
AU
Orica Ltd
ASX:ORI
Average P/E: 76.4
61.3
63%
1
SA
Saudi Basic Industries Corporation SJSC
SAU:2010
Negative Multiple: -8.8 N/A N/A
ID
Chandra Asri Pacific PT Tbk
OTC:PTPIF
41.8
N/A N/A
US
Dow Inc
NYSE:DOW
Negative Multiple: -11 N/A N/A
ID
Chandra Asri Petrochemical Tbk PT
IDX:TPIA
24.8
N/A N/A
UK
LyondellBasell Industries NV
NYSE:LYB
Negative Multiple: -32 N/A N/A
TW
Nan Ya Plastics Corp
TWSE:1303
157.3
138%
1.1
CN
Hengli Petrochemical Co Ltd
SSE:600346
17.4
N/A N/A
KR
LG Chem Ltd
KRX:051910
Negative Multiple: -17.1 N/A N/A
CN
Rongsheng Petrochemical Co Ltd
SZSE:002493
189.3
82%
2.3
CN
G
Guangzhou Tinci Materials Technology Co Ltd
SZSE:002709
42.9
92%
0.5

Market Distribution

Lower than 75% of companies in Australia
Percentile
25th
Based on 1 160 companies
25th percentile
11.1
Low
0.2 — 12.5
Typical Range
12.5 — 35.6
High
35.6 —
Distribution Statistics
Australia
Min 0.2
30th Percentile 12.5
Median 18.1
70th Percentile 35.6
Max 5 049.1

Orica Ltd
Glance View

Orica Ltd, tracing its roots back to 1874, stands as a venerable player in the mining and infrastructure sectors, with a storied history that speaks to its resilience and adaptability. Initially established as a supplier of explosives, the company has evolved through the years, expanding its purview to encompass a vast array of ground support and technical services, vital for industries operating in challenging environments. The company's prowess lies in its ability to deliver complex and highly engineered solutions that ensure efficiency and safety for its varied clientele. This expertise underscores Orica's reputation as a linchpin in the mineral extraction industry, where the precise deployment of its products and services facilitates the safe and effective recovery of valuable resources. At the core of Orica's business model is its specialization in the manufacture and supply of commercial explosives, blasting systems, and mining chemicals, which cater predominantly to the mining, quarrying, and construction industries. The company's success hinges on its sophisticated supply chain and robust distribution network, which ensures just-in-time delivery of essential products to mining operations across the globe. Furthermore, Orica leverages its proprietary technologies and predictive analytics tools to optimize blasting processes, significantly enhancing operational efficiencies and cost savings for its clients. Through strategic innovations and unwavering commitment to safety and environmental stewardship, Orica not only drives profitability but also fortifies its market position in an industry where precision and reliability are paramount.

ORI Intrinsic Value
19.142 AUD
Overvaluation 10%
Intrinsic Value
Price AU$21.245
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