Published on 28 May 2024 on Simply Wall St. via Yahoo Finance
Avon Protection plc (LON:AVON) Shares Could Be 26% Below Their Intrinsic Value Estimate
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Avon Protection fair value estimate is UK£18.44Avon Protection is estimated to be 26% undervalued based on current share price of UK£13.56 The US$13.43 analyst price target for AVON is 27% less than our estimate of fair value
Today we will run through one way of estimating the intrinsic value of Avon Protection plc (LON:AVON) by taking the expected future cash flows and discounting them to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Don't get put off by the jargon, the math behind it is actually quite straightforward.