Published on 17 Nov 2023 on Simply Wall St. via Yahoo Finance
Calculating The Fair Value Of Spirax-Sarco Engineering plc (LON:SPX)
Key Insights
The projected fair value for Spirax-Sarco Engineering is UK£79.64 based on 2 Stage Free Cash Flow to EquitySpirax-Sarco Engineering's UK£87.98 share price indicates it is trading at similar levels as its fair value estimate The UK£105 analyst price target for SPX is 31% more than our estimate of fair value
Does the November share price for Spirax-Sarco Engineering plc (LON:SPX) 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 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.