Published on 19 Jun 2024 on Simply Wall St. · via Yahoo Finance
Is FAT Brands Inc. (NASDAQ:FAT) Trading At A 39% Discount?
Key Insights
Using the Dividend Discount Model, FAT Brands fair value estimate is US$8.48FAT Brands is estimated to be 39% undervalued based on current share price of US$5.13
Today we will run through one way of estimating the intrinsic value of FAT Brands Inc. (NASDAQ:FAT) by taking the forecast future cash flows of the company and discounting them back to today's 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.