Published on 23 Dec 2023 on Simply Wall St. via Yahoo Finance
Is Sally Beauty Holdings, Inc. (NYSE:SBH) Trading At A 47% Discount?
Key Insights
The projected fair value for Sally Beauty Holdings is US$24.84 based on 2 Stage Free Cash Flow to EquityCurrent share price of US$13.19 suggests Sally Beauty Holdings is potentially 47% undervalued Analyst price target for SBH is US$10.30 which is 59% below our fair value estimate
Today we will run through one way of estimating the intrinsic value of Sally Beauty Holdings, Inc. (NYSE:SBH) 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.