Published on 25 Dec 2023 on Simply Wall St. via Yahoo Finance
Are Investors Undervaluing Hikma Pharmaceuticals PLC (LON:HIK) By 26%?
Key Insights
Hikma Pharmaceuticals' estimated fair value is UK£23.92 based on 2 Stage Free Cash Flow to EquityHikma Pharmaceuticals' UK£17.73 share price signals that it might be 26% undervaluedAnalyst price target for HIK is US$21.97 which is 8.1% below our fair value estimate
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Hikma Pharmaceuticals PLC (LON:HIK) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Don't get put off by the jargon, the math behind it is actually quite straightforward.