Published on 6 Oct 2023 on Simply Wall St. via Yahoo Finance
Key Insights
Woolworths Group's estimated fair value is AU$28.73 based on 2 Stage Free Cash Flow to EquityWoolworths Group is estimated to be 31% overvalued based on current share price of AU$37.52 Analyst price target for WOW is AU$38.77, which is 35% above our fair value estimate
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Woolworths Group Limited (ASX:WOW) 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.