Published on 8 May 2024 on Simply Wall St. via Yahoo Finance
Estimating The Intrinsic Value Of AutoZone, Inc. (NYSE:AZO)
Key Insights
Using the 2 Stage Free Cash Flow to Equity, AutoZone fair value estimate is US$3,524Current share price of US$2,991 suggests AutoZone is potentially trading close to its fair value Analyst price target for AZO is US$3,259 which is 7.5% below our fair value estimate
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of AutoZone, Inc. (NYSE:AZO) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Believe it or not, it's not too difficult to follow, as you'll see from our example!