Published on 1 Mar 2024 on Simply Wall St. via Yahoo Finance
Is Keyera Corp. (TSE:KEY) Trading At A 21% Discount?
Key Insights
Keyera's estimated fair value is CA$42.52 based on 2 Stage Free Cash Flow to EquityKeyera's CA$33.39 share price signals that it might be 21% undervaluedOur fair value estimate is 17% higher than Keyera's analyst price target of CA$36.21
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Keyera Corp. (TSE:KEY) as an investment opportunity by taking the expected future cash flows and discounting them to today's value. This will be done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.