Published on 4 Nov 2023 on Simply Wall St. via Yahoo Finance
Estimating The Fair Value Of BridgeBio Pharma, Inc. (NASDAQ:BBIO)
Key Insights
The projected fair value for BridgeBio Pharma is US$35.79 based on 2 Stage Free Cash Flow to EquityBridgeBio Pharma's US$28.83 share price indicates it is trading at similar levels as its fair value estimate The US$47.10 analyst price target for BBIO is 32% more than our estimate of fair value
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of BridgeBio Pharma, Inc. (NASDAQ:BBIO) as an investment opportunity by taking the forecast future cash flows of the company and discounting them back to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Believe it or not, it's not too difficult to follow, as you'll see from our example!