Published on 26 Mar 2023 on Simply Wall St. via Yahoo Finance
Estimating The Fair Value Of Lifestyle Communities Limited (ASX:LIC)
Key Insights
The projected fair value for Lifestyle Communities is AU$13.83 based on 2 Stage Free Cash Flow to EquityWith AU$15.03 share price, Lifestyle Communities appears to be trading close to its estimated fair value The AU$20.12 analyst price target for LIC is 45% more than our estimate of fair value
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Lifestyle Communities Limited (ASX:LIC) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. This will be done using the Discounted Cash Flow (DCF) model. Believe it or not, it's not too difficult to follow, as you'll see from our example!