Published on 8 Mar 2024 on Simply Wall St. via Yahoo Finance
Melrose Industries PLC's (LON:MRO) Intrinsic Value Is Potentially 80% Above Its Share Price
Key Insights
The projected fair value for Melrose Industries is UK£11.13 based on 2 Stage Free Cash Flow to EquityMelrose Industries' UK£6.17 share price signals that it might be 45% undervalued The UK£6.53 analyst price target for MRO is 41% less than our estimate of fair value
How far off is Melrose Industries PLC (LON:MRO) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by estimating the company's future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Don't get put off by the jargon, the math behind it is actually quite straightforward.