Published on 1 Apr 2024 on Simply Wall St. via Yahoo Finance
Calculating The Fair Value Of Wesfarmers Limited (ASX:WES)
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Wesfarmers fair value estimate is AU$69.95With AU$68.40 share price, Wesfarmers appears to be trading close to its estimated fair value The AU$57.89 analyst price target for WES is 17% less than our estimate of fair value
In this article we are going to estimate the intrinsic value of Wesfarmers Limited (ASX:WES) by estimating the company's future cash flows and discounting them to their present value. Our analysis will employ the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.