Published on 28 Nov 2023 on Simply Wall St. via Yahoo Finance
Key Insights
Daqo New Energy's estimated fair value is US$25.09 based on 2 Stage Free Cash Flow to EquityCurrent share price of US$25.97 suggests Daqo New Energy is potentially trading close to its fair valueOur fair value estimate is 35% lower than Daqo New Energy's analyst price target of US$38.56
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Daqo New Energy Corp. (NYSE:DQ) as an investment opportunity by taking the forecast future cash flows of the company and discounting them back to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.