Published on 13 Nov 2023 on Simply Wall St. via Yahoo Finance
A Look At The Fair Value Of Auto Trader Group plc (LON:AUTO)
Key Insights
The projected fair value for Auto Trader Group is UK£7.41 based on 2 Stage Free Cash Flow to EquityWith UK£6.82 share price, Auto Trader Group appears to be trading close to its estimated fair valueOur fair value estimate is 7.1% higher than Auto Trader Group's analyst price target of UK£6.92
How far off is Auto Trader Group plc (LON:AUTO) 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 forecast future cash flows of the company and discounting them back to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.