Published on 13 Apr 2024 on Simply Wall St. via Yahoo Finance
Sonic Healthcare Limited's (ASX:SHL) Intrinsic Value Is Potentially 98% Above Its Share Price
Key Insights
Sonic Healthcare's estimated fair value is AU$53.50 based on 2 Stage Free Cash Flow to EquitySonic Healthcare is estimated to be 49% undervalued based on current share price of AU$27.07 Analyst price target for SHL is AU$30.69 which is 43% below our fair value estimate
Today we will run through one way of estimating the intrinsic value of Sonic Healthcare Limited (ASX:SHL) by estimating the company's future cash flows and discounting them to their present value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow.