Published on 17 Mar 2024 on Simply Wall St. via Yahoo Finance
Is The Berkeley Group Holdings plc (LON:BKG) Trading At A 44% Discount?
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Berkeley Group Holdings fair value estimate is UK£83.19Berkeley Group Holdings is estimated to be 44% undervalued based on current share price of UK£46.89The UK£47.60 analyst price target for BKG is 43% less than our estimate of fair value
Today we will run through one way of estimating the intrinsic value of The Berkeley Group Holdings plc (LON:BKG) by taking the forecast future cash flows of the company and discounting them back to today's value. This will be done using the Discounted Cash Flow (DCF) model. Believe it or not, it's not too difficult to follow, as you'll see from our example!