Published on 26 Mar 2024 on Simply Wall St. via Yahoo Finance
Estimating The Fair Value Of The Sage Group plc (LON:SGE)
Key Insights
Sage Group's estimated fair value is UK£14.45 based on 2 Stage Free Cash Flow to EquitySage Group's UK£12.69 share price indicates it is trading at similar levels as its fair value estimateOur fair value estimate is 23% higher than Sage Group's analyst price target of UK£11.79
In this article we are going to estimate the intrinsic value of The Sage Group plc (LON:SGE) by estimating the company's future cash flows and discounting them to their present value. This will be done using the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex.