Published on 31 Mar 2024 on Simply Wall St. via Yahoo Finance
Calculating The Fair Value Of Garrett Motion Inc. (NASDAQ:GTX)
Key Insights
Garrett Motion's estimated fair value is US$11.92 based on 2 Stage Free Cash Flow to EquityCurrent share price of US$9.94 suggests Garrett Motion is potentially trading close to its fair valueWhen compared to theindustry average discount to fair value of 11%, Garrett Motion's competitors seem to be trading at a lesser discount
Does the March share price for Garrett Motion Inc. (NASDAQ:GTX) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.