Published on 27 Apr 2024 on Simply Wall St. via Yahoo Finance
Taylor Wimpey plc's (LON:TW.) Intrinsic Value Is Potentially 99% Above Its Share Price
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Taylor Wimpey fair value estimate is UK£2.67Taylor Wimpey's UK£1.34 share price signals that it might be 50% undervaluedOur fair value estimate is 71% higher than Taylor Wimpey's analyst price target of UK£1.56
Today we will run through one way of estimating the intrinsic value of Taylor Wimpey plc (LON:TW.) by projecting its future cash flows and then discounting them to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. There's really not all that much to it, even though it might appear quite complex.