Published on 15 Apr 2024 on Simply Wall St. via Yahoo Finance
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Entain fair value estimate is UK£14.91Current share price of UK£8.21 suggests Entain is potentially 45% undervalued The UK£10.56 analyst price target for ENT is 29% less than our estimate of fair value
Today we will run through one way of estimating the intrinsic value of Entain Plc (LON:ENT) by taking the expected future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.