Published on 3 Apr 2024 on Simply Wall St. via Yahoo Finance
Key Insights
The projected fair value for Wendy's is US$14.87 based on 2 Stage Free Cash Flow to EquityCurrent share price of US$18.51 suggests Wendy's is potentially 24% overvaluedOur fair value estimate is 29% lower than Wendy's' analyst price target of US$21.08
Does the April share price for The Wendy's Company (NASDAQ:WEN) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the forecast future cash flows of the company and discounting them back to today's value. Our analysis will employ the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex.