Published on 21 Apr 2024 on Simply Wall St. via Yahoo Finance
Is Aristocrat Leisure Limited (ASX:ALL) Trading At A 35% Discount?
Key Insights
Aristocrat Leisure's estimated fair value is AU$62.34 based on 2 Stage Free Cash Flow to EquityAristocrat Leisure is estimated to be 35% undervalued based on current share price of AU$40.32Our fair value estimate is 31% higher than Aristocrat Leisure's analyst price target of AU$47.49
Today we will run through one way of estimating the intrinsic value of Aristocrat Leisure Limited (ASX:ALL) by taking the forecast future cash flows of the company and discounting them back to today's value. This will be done using the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex.