Published on 24 Nov 2023 on Simply Wall St. via Yahoo Finance
Mitek Systems, Inc.'s (NASDAQ:MITK) Intrinsic Value Is Potentially 57% Above Its Share Price
Key Insights
Mitek Systems' estimated fair value is US$17.31 based on 2 Stage Free Cash Flow to EquityCurrent share price of US$11.06 suggests Mitek Systems is potentially 36% undervaluedOur fair value estimate is 2.5% lower than Mitek Systems' analyst price target of US$17.75
Today we will run through one way of estimating the intrinsic value of Mitek Systems, Inc. (NASDAQ:MITK) by taking the expected future cash flows and discounting them to today's value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow.