Published on 6 Apr 2024 on Simply Wall St. via Yahoo Finance
Key Insights
The projected fair value for Universal Display is US$177 based on 2 Stage Free Cash Flow to EquityUniversal Display's US$163 share price indicates it is trading at similar levels as its fair value estimate The US$202 analyst price target for OLED is 14% more than our estimate of fair value
Today we will run through one way of estimating the intrinsic value of Universal Display Corporation (NASDAQ:OLED) by taking the expected future cash flows and discounting them to their present value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.