Published on 2 Mar 2024 on Simply Wall St. via Yahoo Finance
Puma Biotechnology, Inc. (NASDAQ:PBYI) Shares Could Be 47% Below Their Intrinsic Value Estimate
Key Insights
Puma Biotechnology's estimated fair value is US$11.07 based on 2 Stage Free Cash Flow to EquityCurrent share price of US$5.89 suggests Puma Biotechnology is potentially 47% undervaluedIndustry average discount to fair value of 21% suggests Puma Biotechnology's peers are currently trading at a lower discount
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Puma Biotechnology, Inc. (NASDAQ:PBYI) as an investment opportunity by projecting its future cash flows and then discounting them to today's value. Our analysis will employ the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex.