Published on 25 Dec 2023 on Simply Wall St. via Yahoo Finance
Bayer Aktiengesellschaft (ETR:BAYN) Shares Could Be 42% Below Their Intrinsic Value Estimate
Key Insights
Using the Dividend Discount Model, Bayer fair value estimate is €56.24Bayer's €32.71 share price signals that it might be 42% undervaluedOur fair value estimate is 13% higher than Bayer's analyst price target of €49.67
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Bayer Aktiengesellschaft (ETR:BAYN) as an investment opportunity by taking the expected future cash flows and discounting them to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.