Published on 5 Apr 2024 on Simply Wall St. via Yahoo Finance
Key Insights
J Sainsbury's estimated fair value is UK£4.69 based on 2 Stage Free Cash Flow to EquityJ Sainsbury's UK£2.71 share price signals that it might be 42% undervalued Analyst price target for SBRY is UK£3.01 which is 36% below our fair value estimate
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of J Sainsbury plc (LON:SBRY) 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. Don't get put off by the jargon, the math behind it is actually quite straightforward.