Published on 8 Nov 2023 on Simply Wall St. via Yahoo Finance
Are Investors Undervaluing ATI Physical Therapy, Inc. (NYSE:ATIP) By 23%?
Key Insights
Using the 2 Stage Free Cash Flow to Equity, ATI Physical Therapy fair value estimate is US$10.46Current share price of US$8.09 suggests ATI Physical Therapy is potentially 23% undervaluedWhen compared to theindustry average discount to fair value of 39%, ATI Physical Therapy's competitors seem to be trading at a greater discount
Today we will run through one way of estimating the intrinsic value of ATI Physical Therapy, Inc. (NYSE:ATIP) 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. Don't get put off by the jargon, the math behind it is actually quite straightforward.