Published on 15 Aug 2023 on Simply Wall St. via Yahoo Finance
Croda International Plc's (LON:CRDA) Intrinsic Value Is Potentially 26% Below Its Share Price
Key Insights
Croda International's estimated fair value is UK£40.65 based on 2 Stage Free Cash Flow to EquityCroda International's UK£54.60 share price signals that it might be 34% overvalued Analyst price target for CRDA is UK£62.82, which is 55% above our fair value estimate
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Croda International Plc (LON:CRDA) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.