Published on 16 Dec 2023 on Simply Wall St. via Yahoo Finance
Sonoco Products Company (NYSE:SON) Shares Could Be 41% Below Their Intrinsic Value Estimate
Key Insights
Sonoco Products' estimated fair value is US$95.44 based on 2 Stage Free Cash Flow to EquitySonoco Products' US$56.29 share price signals that it might be 41% undervaluedOur fair value estimate is 63% higher than Sonoco Products' analyst price target of US$58.67
How far off is Sonoco Products Company (NYSE:SON) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by projecting its future cash flows and then 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.