Published on 25 Feb 2024 on Simply Wall St. via Yahoo Finance
An Intrinsic Calculation For CSL Limited (ASX:CSL) Suggests It's 21% Undervalued
Key Insights
Using the 2 Stage Free Cash Flow to Equity, CSL fair value estimate is AU$362Current share price of AU$285 suggests CSL is potentially 21% undervalued The US$302 analyst price target for CSL is 17% less than our estimate of fair value
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of CSL Limited (ASX:CSL) as an investment opportunity by taking the expected future cash flows and discounting them to today's value. Our analysis will employ the Discounted Cash Flow (DCF) model. Believe it or not, it's not too difficult to follow, as you'll see from our example!