Published on 23 Mar 2024 on Simply Wall St. via Yahoo Finance
Is Prestige Consumer Healthcare Inc. (NYSE:PBH) Trading At A 49% Discount?
Key Insights
The projected fair value for Prestige Consumer Healthcare is US$143 based on 2 Stage Free Cash Flow to EquityPrestige Consumer Healthcare is estimated to be 49% undervalued based on current share price of US$73.25Our fair value estimate is 92% higher than Prestige Consumer Healthcare's analyst price target of US$74.33
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Prestige Consumer Healthcare Inc. (NYSE:PBH) as an investment opportunity by taking the forecast future cash flows of the company and discounting them back to today's value. This will be done using 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.