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 (2024-03-28), Lumen Technologies's Intrinsic Value: Projected FCF is $22.82. The stock price of Lumen Technologies is $1.56. Therefore, Lumen Technologies's Price-to-Intrinsic-Value-Projected-FCF of today is 0.1.
The historical rank and industry rank for Lumen Technologies'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 Lumen Technologies was 0.75. The lowest was 0.07. And the median was 0.41.
Lumen Technologies Intrinsic Value: Projected FCF Historical Data
The historical data trend for Lumen Technologies'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.
| Lumen Technologies Annual Data | |||||||||||
| Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |
| Intrinsic Value: Projected FCF | 29.98 | 28.99 | 33.43 | 32.70 | 22.82 | ||||||
| Lumen Technologies Quarterly Data | ||||||||||||||||||||
| Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
| Intrinsic Value: Projected FCF | 32.70 | 33.38 | 24.44 | 24.67 | 22.82 | |||||||||||||||
Competitive Comparison
For the Telecom Services subindustry, Lumen Technologies'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.
Lumen Technologies Price-to-Projected-FCF Distribution
For the Telecommunication Services industry and Communication Services sector, Lumen Technologies's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where Lumen Technologies's Price-to-Projected-FCF falls into.
Lumen Technologies 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 Lumen Technologies's Free Cash Flow(6 year avg) = $2,323.04.
Lumen Technologies'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 (Dec23) | * | 0.8) | / | Shares Outstanding (Diluted Average) |
| = | (9.5203515959648 | * | 2323.04 | + | 417 | * | 0.8) | / | 983.765 | |
| = | 22.82 |
* 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.
Lumen Technologies(NYSE:LUMN) 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.
Lumen Technologies's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
| Price-to-Intrinsic-Value-Projected-FCF | = | Share Price | / | Intrinsic Value: Projected FCF |
| = | 1.56 | / | 22.820244236672 | |
| = | 0.07 |
* 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.
Lumen Technologies Intrinsic Value: Projected FCF Related Terms
Thank you for viewing the detailed overview of Lumen Technologies's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
Lumen Technologies (NYSE:LUMN) Business Description
Industry
GURUFOCUS.COM »STOCK LIST »Communication Services » Telecommunication Services » Lumen Technologies Inc (NYSE:LUMN) » Definitions » Intrinsic Value: Projected FCF
Comparable Companies
TDS LILA GOGO SHEN IDT IHS ATUS ATEX ATNI CABO TMUS SHSE:600941 VZ CMCSA T XTER:DTE TSE:9432 TSE:9984 NSE:BHARTIARTL HKSE:00728
Traded in Other Exchanges
LUMN:Mexico 1CYTH:Italy CYTH:Germany CYTH:Germany L1MN34:Brazil
Address
100 CenturyLink Drive, Monroe, LA, USA, 71203
Website
With 450,000 route miles of fiber, including over 35,000 route miles of subsea fiber connecting Europe, Asia, and Latin America, Lumen Technologies is one of the United States' largest telecommunications carriers serving global enterprises. Its merger with Level 3 in 2017 and divestiture of much of its incumbent local exchange carrier, or ILEC, business in 2022 has shifted the company's operations away from its legacy consumer business and toward enterprises (now nearly 80% of revenue). Lumen offers businesses a full menu of communications services, providing colocation and data center services, data transportation, and end-user phone and internet service. On the consumer side, Lumen provides broadband and phone service across 37 states, where it has 4.5 million broadband customers.
Executives
| James Fowler | director | 100 CENTURYLINK DRIVE, MONROE LA 71203 |
| Christopher Stansbury | officer: EVP and CFO | C/O ARROW ELECTRONICS, INC, 9201 EAST DRY CREEK ROAD, CENTENNIAL CO 80112 |
| Kathleen E Johnson | director, officer: President & CEO | 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328 |
| Quincy L Allen | director | 6600 NORTH MILITARY TRAIL, LEGAL DEPARTMENT, BOCA RATON FL 33496 |
| Ashley Haynes-gaspar | officer: EVP and Customer Exp Officer | 100 CENTURYLINK DRIVE, MONROE LA 71203 |
| Kevin P. Chilton | director | 1201 LAKE ROBBINS DRIVE, THE WOODLANDS TX 77380 |
| Laurie Siegel | director | C/O VOLT INFORMATION SCIENCES, INC., 1133 AVENUE OF THE AMERICAS, 15TH FLOOR, NEW YORK NY 10036 |
| Peter C Brown | director | 909 WALNUT STE 200, KANSAS CITY MO 64106 |
| Scott Trezise | officer: EVP, Human Resources | 100 CENTURYLINK DRIVE, MONROE LA 71203 |
| Shaun C Andrews | officer: Exec VP & Chief Mktg Officer | 100 CENTURYLINK DRIVE, MONROE LA 71203 |
| Sham Chotai | officer: EVP, Product and IT | 10201 TORRE AVENUE, SUITE 350, CUPERTINO CA 95014 |
| Michael James Roberts | director | ONE MCDONALD'S PLAZA, OAK BROOK IL 60523 |
| Steven T Clontz | director | 781 THIRD AVENUE, KING OF PRUSSIA PA 19406-1409 |
| Martha Helena Bejar | director | C/O POLYCOM, INC., 6001 AMERICA CENTER DRIVE, SAN JOSE CA 95002 |
| Hal Jones | director | 1150 15TH STREET, NW, WASHINGTON DC 20071 |
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