Published on 10 Nov 2023 on Simply Wall St. via Yahoo Finance
Is There An Opportunity With Alvopetro Energy Ltd.'s (CVE:ALV) 50% Undervaluation?
Key Insights
The projected fair value for Alvopetro Energy is CA$17.90 based on 2 Stage Free Cash Flow to EquityAlvopetro Energy's CA$9.00 share price signals that it might be 50% undervalued The US$13.00 analyst price target for ALV is 27% less than our estimate of fair value
Does the November share price for Alvopetro Energy Ltd. (CVE:ALV) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow.