Published on 24 Feb 2024 on Simply Wall St. via Yahoo Finance
Are Investors Undervaluing South32 Limited (ASX:S32) By 21%?
Key Insights
South32's estimated fair value is AU$3.64 based on 2 Stage Free Cash Flow to EquitySouth32 is estimated to be 21% undervalued based on current share price of AU$2.89 The US$3.64 analyst price target for S32is comparable to our estimate of fair value.
Today we will run through one way of estimating the intrinsic value of South32 Limited (ASX:S32) by projecting its future cash flows and then discounting them to today's value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Don't get put off by the jargon, the math behind it is actually quite straightforward.