Published on 19 Jun 2024 on Simply Wall St. · via Yahoo Finance
Are Dollarama Inc. (TSE:DOL) Investors Paying Above The Intrinsic Value?
Key Insights
The projected fair value for Dollarama is CA$92.61 based on 2 Stage Free Cash Flow to EquityDollarama is estimated to be 31% overvalued based on current share price of CA$122Our fair value estimate is 29% lower than Dollarama's analyst price target of CA$130
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Dollarama Inc. (TSE:DOL) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. It may sound complicated, but actually it is quite simple!