Published on 24 May 2024 on Simply Wall St. via Yahoo Finance
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Snowflake fair value estimate is US$237Snowflake's US$163 share price signals that it might be 31% undervaluedOur fair value estimate is 16% higher than Snowflake's analyst price target of US$205
Does the May share price for Snowflake Inc. (NYSE:SNOW) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Believe it or not, it's not too difficult to follow, as you'll see from our example!