Published on 8 Mar 2024 on Simply Wall St. via Yahoo Finance
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Reynolds Consumer Products fair value estimate is US$36.11Current share price of US$28.74 suggests Reynolds Consumer Products is potentially 20% undervaluedOur fair value estimate is 17% higher than Reynolds Consumer Products' analyst price target of US$30.75
In this article we are going to estimate the intrinsic value of Reynolds Consumer Products Inc. (NASDAQ:REYN) by projecting its future cash flows and then discounting them 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.