Published on 20 May 2024 on Simply Wall St. · via Yahoo Finance
An Intrinsic Calculation For Hikma Pharmaceuticals PLC (LON:HIK) Suggests It's...
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Hikma Pharmaceuticals fair value estimate is UK£29.89Hikma Pharmaceuticals is estimated to be 35% undervalued based on current share price of UK£19.30 Analyst price target for HIK is US$22.93 which is 23% below our fair value estimate
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Hikma Pharmaceuticals PLC (LON:HIK) as an investment opportunity by taking the expected future cash flows and discounting them to their present 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.