Published on 1 Apr 2024 on Simply Wall St. via Yahoo Finance
Range Resources Corporation (NYSE:RRC) Shares Could Be 32% Above Their Intrinsic Value Estimate
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Range Resources fair value estimate is US$26.08Range Resources is estimated to be 32% overvalued based on current share price of US$34.43Our fair value estimate is 23% lower than Range Resources' analyst price target of US$33.84
How far off is Range Resources Corporation (NYSE:RRC) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by estimating the company's future cash flows and discounting them to their present value. This will be done using the Discounted Cash Flow (DCF) model. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow.