Published on 1 Apr 2024 on Simply Wall St. via Yahoo Finance
Is United Utilities Group PLC (LON:UU.) Worth UK£10.3 Based On Its Intrinsic Value?
Key Insights
The projected fair value for United Utilities Group is UK£7.70 based on Dividend Discount ModelUnited Utilities Group's UK£10.29 share price signals that it might be 34% overvaluedOur fair value estimate is 31% lower than United Utilities Group's analyst price target of UK£11.14
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of United Utilities Group PLC (LON:UU.) as an investment opportunity by projecting its future cash flows and then discounting them to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex.