Published on 28 Feb 2024 on Simply Wall St. via Yahoo Finance
Estimating The Fair Value Of DRDGOLD Limited (NYSE:DRD)
Key Insights
DRDGOLD's estimated fair value is US$5.57 based on 2 Stage Free Cash Flow to EquityCurrent share price of US$6.64 suggests DRDGOLD is potentially trading close to its fair valueWhen compared to theindustry average discount of -395%, DRDGOLD's competitors seem to be trading at a greater premium to fair value
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of DRDGOLD Limited (NYSE:DRD) as an investment opportunity by taking the expected future cash flows and discounting them to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. It may sound complicated, but actually it is quite simple!