Published on 14 Dec 2023 on Simply Wall St. via Yahoo Finance
EMCORE Corporation (NASDAQ:EMKR) Shares Could Be 48% Below Their Intrinsic Value Estimate
Key Insights
Using the 2 Stage Free Cash Flow to Equity, EMCORE fair value estimate is US$0.79EMCORE's US$0.41 share price signals that it might be 48% undervaluedOur fair value estimate is 53% lower than EMCORE's analyst price target of US$1.69
Today we will run through one way of estimating the intrinsic value of EMCORE Corporation (NASDAQ:EMKR) by taking the expected future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. Believe it or not, it's not too difficult to follow, as you'll see from our example!