Published on 14 Mar 2024 on Simply Wall St. via Yahoo Finance
Is SJW Group (NYSE:SJW) Expensive For A Reason? A Look At Its Intrinsic Value
Key Insights
Using the Dividend Discount Model, SJW Group fair value estimate is US$47.86SJW Group is estimated to be 21% overvalued based on current share price of US$57.72 Analyst price target for SJW is US$68.83, which is 44% above our fair value estimate
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of SJW Group (NYSE:SJW) as an investment opportunity by taking the forecast future cash flows of the company and discounting them back to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. There's really not all that much to it, even though it might appear quite complex.