Published on 11 Mar 2024 on Simply Wall St. via Yahoo Finance
Estimating The Intrinsic Value Of Pets at Home Group Plc (LON:PETS)
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Pets at Home Group fair value estimate is UK£2.68With UK£2.79 share price, Pets at Home Group appears to be trading close to its estimated fair value The UK£3.71 analyst price target for PETS is 39% more than our estimate of fair value
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Pets at Home Group Plc (LON:PETS) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. This will be done using the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex.