Published on 24 Apr 2024 on Simply Wall St. via Yahoo Finance
Estimating The Intrinsic Value Of XP Power Limited (LON:XPP)
Key Insights
Using the 2 Stage Free Cash Flow to Equity, XP Power fair value estimate is UK£10.49With UK£10.36 share price, XP Power appears to be trading close to its estimated fair value The UK£15.73 analyst price target for XPP is 50% more than our estimate of fair value
Does the April share price for XP Power Limited (LON:XPP) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow.