Published on 1 Sep 2023 on Simply Wall St. via Yahoo Finance
Is Desktop Metal, Inc. (NYSE:DM) Trading At A 26% Discount?
Key Insights
The projected fair value for Desktop Metal is US$2.44 based on 2 Stage Free Cash Flow to EquityCurrent share price of US$1.80 suggests Desktop Metal is potentially 26% undervalued The US$2.42 analyst price target for DM is 1.2% less than our estimate of fair value
How far off is Desktop Metal, Inc. (NYSE:DM) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.