Published on 19 Jun 2024 on Simply Wall St. · via Yahoo Finance
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Loblaw Companies fair value estimate is CA$134With CA$154 share price, Loblaw Companies appears to be trading close to its estimated fair valueOur fair value estimate is 17% lower than Loblaw Companies' analyst price target of CA$161
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Loblaw Companies Limited (TSE:L) as an investment opportunity by projecting its future cash flows and then discounting them to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.