Published on 4 May 2024 on Simply Wall St. via Yahoo Finance
Stem, Inc. (NYSE:STEM) Shares Could Be 30% Above Their Intrinsic Value Estimate
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Stem fair value estimate is US$1.05Stem is estimated to be 30% overvalued based on current share price of US$1.36Our fair value estimate is 77% lower than Stem's analyst price target of US$4.56
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Stem, Inc. (NYSE:STEM) as an investment opportunity by taking the expected future cash flows and discounting them to today's 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.