Published on 26 Jan 2024 on Simply Wall St. via Yahoo Finance
Is There An Opportunity With RS Group plc's (LON:RS1) 33% Undervaluation?
Key Insights
RS Group's estimated fair value is UK£11.42 based on 2 Stage Free Cash Flow to EquityRS Group is estimated to be 33% undervalued based on current share price of UK£7.60Analyst price target for RS1 is UK£9.00 which is 21% below our fair value estimate
How far off is RS Group plc (LON:RS1) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by projecting its future cash flows and then discounting them to today's value. One way to achieve this is by employing 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.