Published on 14 Jul 2023 on Simply Wall St. via Yahoo Finance
A Look At The Intrinsic Value Of South32 Limited (ASX:S32)
Key Insights
The projected fair value for South32 is AU$3.39 based on 2 Stage Free Cash Flow to EquityWith AU$3.86 share price, South32 appears to be trading close to its estimated fair value The US$4.68 analyst price target for S32 is 38% 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 South32 Limited (ASX:S32) 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. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow.