Published on 30 Mar 2023 on Simply Wall St. via Yahoo Finance
Calculating The Fair Value Of South32 Limited (ASX:S32)
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of South32 Limited (ASX:S32) as an investment opportunity by taking the forecast future cash flows of the company and discounting them back to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. Don't get put off by the jargon, the math behind it is actually quite straightforward.
Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model.
Check out our latest analysis for South32