Published on 21 Jan 2024 on Simply Wall St. via Yahoo Finance
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Treasury Wine Estates fair value estimate is AU$19.82Current share price of AU$10.48 suggests Treasury Wine Estates is potentially 47% undervaluedOur fair value estimate is 51% higher than Treasury Wine Estates' analyst price target of AU$13.10
Does the January share price for Treasury Wine Estates Limited (ASX:TWE) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by projecting its future cash flows and then discounting them to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. Don't get put off by the jargon, the math behind it is actually quite straightforward.