Published on 16 Mar 2024 on Simply Wall St. via Yahoo Finance
Are Investors Undervaluing Addus HomeCare Corporation (NASDAQ:ADUS) By 42%?
Key Insights
The projected fair value for Addus HomeCare is US$166 based on 2 Stage Free Cash Flow to EquityCurrent share price of US$96.76 suggests Addus HomeCare is potentially 42% undervalued Analyst price target for ADUS is US$105 which is 37% below our fair value estimate
Today we will run through one way of estimating the intrinsic value of Addus HomeCare Corporation (NASDAQ:ADUS) by taking the expected future cash flows and discounting them to their present value. Our analysis will employ 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.