Published on 19 Jun 2024 on Simply Wall St. · via Yahoo Finance
Calculating The Intrinsic Value Of Ramsay Health Care Limited (ASX:RHC)
Key Insights
Ramsay Health Care's estimated fair value is AU$58.82 based on 2 Stage Free Cash Flow to EquityWith AU$47.46 share price, Ramsay Health Care appears to be trading close to its estimated fair value Analyst price target for RHC is AU$56.86 which is 3.3% below our fair value estimate
Today we will run through one way of estimating the intrinsic value of Ramsay Health Care Limited (ASX:RHC) 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. It may sound complicated, but actually it is quite simple!