Published on 8 Dec 2023 on Simply Wall St. via Yahoo Finance
Key Insights
FutureFuel's estimated fair value is US$5.71 based on Dividend Discount ModelWith US$5.96 share price, FutureFuel appears to be trading close to its estimated fair valuePeers of FutureFuel are currently trading on average at a 14% discount
In this article we are going to estimate the intrinsic value of FutureFuel Corp. (NYSE:FF) by taking the expected future cash flows and discounting them to their present 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.