Published on 19 Mar 2024 on Simply Wall St. via Yahoo Finance
Rapid7, Inc.'s (NASDAQ:RPD) Intrinsic Value Is Potentially 44% Above Its Share Price
Key Insights
Rapid7's estimated fair value is US$73.72 based on 2 Stage Free Cash Flow to EquityRapid7's US$51.08 share price signals that it might be 31% undervaluedOur fair value estimate is 22% higher than Rapid7's analyst price target of US$60.47
Does the March share price for Rapid7, Inc. (NASDAQ:RPD) reflect what it's really worth? Today, we will estimate the stock's intrinsic value 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. Don't get put off by the jargon, the math behind it is actually quite straightforward.