Published on 9 Mar 2024 on Simply Wall St. via Yahoo Finance
Scorpio Tankers Inc. (NYSE:STNG) Shares Could Be 29% Below Their Intrinsic Value Estimate
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Scorpio Tankers fair value estimate is US$96.15Scorpio Tankers' US$68.32 share price signals that it might be 29% undervaluedOur fair value estimate is 14% higher than Scorpio Tankers' analyst price target of US$84.33
Does the March share price for Scorpio Tankers Inc. (NYSE:STNG) 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 their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. There's really not all that much to it, even though it might appear quite complex.