Published on 30 Apr 2024 on Simply Wall St. via Yahoo Finance

E2open Parent Holdings, Inc. (NYSE:ETWO) Shares Could Be 25% Above Their Intrinsic Value Estimate

Key Insights

Using the 2 Stage Free Cash Flow to Equity, E2open Parent Holdings fair value estimate is US$3.89Current share price of US$4.85 suggests E2open Parent Holdings is potentially 25% overvalued Analyst price target for ETWO is US$4.50, which is 16% above our fair value estimate

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of E2open Parent Holdings, Inc. (NYSE:ETWO) as an investment opportunity by taking the expected 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.