Published on 6 Jun 2023 on Simply Wall St. via Yahoo Finance
Estimating The Fair Value Of Auto Trader Group plc (LON:AUTO)
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Auto Trader Group fair value estimate is UK£5.94Current share price of UK£6.11 suggests Auto Trader Group is potentially trading close to its fair valueOur fair value estimate is 9.5% lower than Auto Trader Group's analyst price target of UK£6.56
Today we will run through one way of estimating the intrinsic value of Auto Trader Group plc (LON:AUTO) by taking the expected future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. It may sound complicated, but actually it is quite simple!