Published on 4 Jul 2023 on Simply Wall St. via Yahoo Finance
Is There An Opportunity With The Howard Hughes Corporation's (NYSE:HHC) 25% Undervaluation?
Key Insights
The projected fair value for Howard Hughes is US$107 based on 2 Stage Free Cash Flow to EquityHoward Hughes' US$79.68 share price signals that it might be 25% undervalued The US$104 analyst price target for HHC is 2.9% 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 The Howard Hughes Corporation (NYSE:HHC) as an investment opportunity by taking the forecast future cash flows of the company and discounting them back to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow.