Published on 28 Jan 2024 on Simply Wall St. via Yahoo Finance
Geberit AG's (VTX:GEBN) Intrinsic Value Is Potentially 23% Below Its Share Price
Key Insights
The projected fair value for Geberit is CHF382 based on 2 Stage Free Cash Flow to EquityGeberit's CHF498 share price signals that it might be 30% overvaluedOur fair value estimate is 13% lower than Geberit's analyst price target of CHF440
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Geberit AG (VTX:GEBN) as an investment opportunity by taking the forecast future cash flows of the company and discounting them back to today's value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. There's really not all that much to it, even though it might appear quite complex.