Published on 6 Apr 2024 on Simply Wall St. via Yahoo Finance
Are Kadant Inc. (NYSE:KAI) Investors Paying Above The Intrinsic Value?
Key Insights
Kadant's estimated fair value is US$224 based on 2 Stage Free Cash Flow to EquityCurrent share price of US$300 suggests Kadant is potentially 34% overvaluedOur fair value estimate is 35% lower than Kadant's analyst price target of US$343
In this article we are going to estimate the intrinsic value of Kadant Inc. (NYSE:KAI) by taking the expected future cash flows and discounting them to today's value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow.