Published on 20 Feb 2024 on Simply Wall St. via Yahoo Finance
MGP Ingredients, Inc.'s (NASDAQ:MGPI) Intrinsic Value Is Potentially 34% Above Its Share Price
Key Insights
MGP Ingredients' estimated fair value is US$123 based on 2 Stage Free Cash Flow to EquityMGP Ingredients' US$91.75 share price signals that it might be 25% undervalued The US$131 analyst price target for MGPI is 6.3% 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 MGP Ingredients, Inc. (NASDAQ:MGPI) as an investment opportunity by taking the expected future cash flows and discounting them to today's value. One way to achieve this is by employing 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.