Published on 28 Mar 2024 on Simply Wall St. via Yahoo Finance
Stepan Company's (NYSE:SCL) Intrinsic Value Is Potentially 60% Above Its Share Price
Key Insights
The projected fair value for Stepan is US$143 based on 2 Stage Free Cash Flow to EquityStepan is estimated to be 37% undervalued based on current share price of US$89.67 Analyst price target for SCL is US$99.50 which is 31% below our fair value estimate
In this article we are going to estimate the intrinsic value of Stepan Company (NYSE:SCL) by taking the expected future cash flows and discounting them to today's value. This will be done using the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.