Published on 10 Jan 2024 on Simply Wall St. via Yahoo Finance
Are Investors Undervaluing Cabaletta Bio, Inc. (NASDAQ:CABA) By 47%?
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Cabaletta Bio fair value estimate is US$45.79Current share price of US$24.24 suggests Cabaletta Bio is potentially 47% undervalued The US$32.67 analyst price target for CABA is 29% less than our estimate of fair value
Today we will run through one way of estimating the intrinsic value of Cabaletta Bio, Inc. (NASDAQ:CABA) 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. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.