Published on 14 Feb 2024 on Simply Wall St. via Yahoo Finance
Is There An Opportunity With MTY Food Group Inc.'s (TSE:MTY) 39% Undervaluation?
Key Insights
The projected fair value for MTY Food Group is CA$94.35 based on 2 Stage Free Cash Flow to EquityMTY Food Group's CA$57.18 share price signals that it might be 39% undervalued Analyst price target for MTY is CA$69.00 which is 27% below our fair value estimate
Today we will run through one way of estimating the intrinsic value of MTY Food Group Inc. (TSE:MTY) by taking the expected future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.