Published on 11 Sep 2023 on Simply Wall St. via Yahoo Finance
Is There An Opportunity With Aritzia Inc.'s (TSE:ATZ) 38% Undervaluation?
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Aritzia fair value estimate is CA$38.11Aritzia's CA$23.60 share price signals that it might be 38% undervalued The CA$36.25 analyst price target for ATZ is 4.9% less than our estimate of fair value
How far off is Aritzia Inc. (TSE:ATZ) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by projecting its future cash flows and then discounting them to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.