Published on 21 Jan 2024 on Simply Wall St. via Yahoo Finance
Are Quarterhill Inc. (TSE:QTRH) Investors Paying Above The Intrinsic Value?
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Quarterhill fair value estimate is CA$1.38Quarterhill's CA$1.84 share price signals that it might be 34% overvaluedOur fair value estimate is 20% lower than Quarterhill's analyst price target of CA$1.72
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Quarterhill Inc. (TSE:QTRH) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. This will be done using the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.