Published on 11 Mar 2024 on Simply Wall St. via Yahoo Finance
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Rolls-Royce Holdings fair value estimate is UK£6.68Current share price of UK£3.86 suggests Rolls-Royce Holdings is potentially 42% undervalued Analyst price target for RR. is UK£4.06 which is 39% below our fair value estimate
In this article we are going to estimate the intrinsic value of Rolls-Royce Holdings plc (LON:RR.) 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.