Published on 25 May 2024 on Simply Wall St. via Yahoo Finance
West Fraser Timber Co. Ltd. (TSE:WFG) Shares Could Be 46% Below Their Intrinsic Value Estimate
Key Insights
Using the 2 Stage Free Cash Flow to Equity, West Fraser Timber fair value estimate is CA$206West Fraser Timber's CA$112 share price signals that it might be 46% undervaluedOur fair value estimate is 56% higher than West Fraser Timber's analyst price target of US$132
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of West Fraser Timber Co. Ltd. (TSE:WFG) as an investment opportunity by taking the expected future cash flows and discounting them to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.