Published on 31 May 2024 on Simply Wall St. via Yahoo Finance
Key Insights
easyJet's estimated fair value is UK£5.14 based on 2 Stage Free Cash Flow to EquityCurrent share price of UK£4.60 suggests easyJet is potentially trading close to its fair value The UK£7.06 analyst price target for EZJ is 37% more than our estimate of fair value
In this article we are going to estimate the intrinsic value of easyJet plc (LON:EZJ) by taking the expected future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. Believe it or not, it's not too difficult to follow, as you'll see from our example!