Published on 12 Apr 2024 on Simply Wall St. via Yahoo Finance
Alamo Group Inc. (NYSE:ALG) Shares Could Be 23% Below Their Intrinsic Value Estimate
Key Insights
Alamo Group's estimated fair value is US$286 based on 2 Stage Free Cash Flow to EquityAlamo Group is estimated to be 23% undervalued based on current share price of US$220 The US$231 analyst price target for ALG is 19% less than our estimate of fair value
How far off is Alamo Group Inc. (NYSE:ALG) 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 today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex.