Published on 6 Mar 2024 on Simply Wall St. via Yahoo Finance
Informa plc (LON:INF) Shares Could Be 48% Below Their Intrinsic Value Estimate
Key Insights
The projected fair value for Informa is UK£15.49 based on 2 Stage Free Cash Flow to EquityInforma is estimated to be 48% undervalued based on current share price of UK£8.07 The UK£9.26 analyst price target for INF is 40% less than our estimate of fair value
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Informa plc (LON:INF) 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. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow.