Published on 19 Jun 2024 on Simply Wall St. · via Yahoo Finance
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Siemens fair value estimate is €270Siemens' €174 share price signals that it might be 36% undervalued The €193 analyst price target for SIE is 29% 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 Siemens Aktiengesellschaft (ETR:SIE) as an investment opportunity by projecting its future cash flows and then discounting them to today's value. This will be done using the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.