Published on 21 Oct 2023 on Simply Wall St. · via Yahoo Finance
A Look At The Fair Value Of Earthstone Energy, Inc. (NYSE:ESTE)
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Earthstone Energy fair value estimate is US$15.25Earthstone Energy's US$14.29 share price indicates it is trading at similar levels as its fair value estimateOur fair value estimate is 40% lower than Earthstone Energy's analyst price target of US$25.43
How far off is Earthstone Energy, Inc. (NYSE:ESTE) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow.