Published on 30 Apr 2024 on Simply Wall St. via Yahoo Finance
TPG Telecom Limited (ASX:TPG) Shares Could Be 32% Above Their Intrinsic Value Estimate
Key Insights
TPG Telecom's estimated fair value is AU$3.42 based on Dividend Discount ModelTPG Telecom is estimated to be 32% overvalued based on current share price of AU$4.51 The AU$5.21 analyst price target for TPG is 52% more than our estimate of fair value
How far off is TPG Telecom Limited (ASX:TPG) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the forecast future cash flows of the company and discounting them back to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.