Published on 16 Apr 2024 on Simply Wall St. via Yahoo Finance
Is Seven Group Holdings Limited (ASX:SVW) Trading At A 31% Discount?
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Seven Group Holdings fair value estimate is AU$57.45Seven Group Holdings is estimated to be 31% undervalued based on current share price of AU$39.36 The AU$38.59 analyst price target for SVW is 33% less than our estimate of fair value
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Seven Group Holdings Limited (ASX:SVW) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Believe it or not, it's not too difficult to follow, as you'll see from our example!