Published on 16 Apr 2024 on Simply Wall St. via Yahoo Finance
Is Dunelm Group plc (LON:DNLM) Trading At A 38% Discount?
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Dunelm Group fair value estimate is UK£17.56Current share price of UK£10.89 suggests Dunelm Group is potentially 38% undervalued The UK£11.98 analyst price target for DNLM is 32% less than our estimate of fair value
Today we will run through one way of estimating the intrinsic value of Dunelm Group plc (LON:DNLM) by taking the expected future cash flows and discounting them to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!