Published on 29 Feb 2024 on Simply Wall St. via Yahoo Finance
Are Investors Undervaluing The Timken Company (NYSE:TKR) By 43%?
Key Insights
Timken's estimated fair value is US$147 based on 2 Stage Free Cash Flow to EquityCurrent share price of US$83.93 suggests Timken is potentially 43% undervalued Analyst price target for TKR is US$86.08 which is 41% below our fair value estimate
In this article we are going to estimate the intrinsic value of The Timken Company (NYSE:TKR) by taking the forecast future cash flows of the company and discounting them back to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.