Published on 14 Mar 2024 on Simply Wall St. via Yahoo Finance
Is Balfour Beatty plc (LON:BBY) Trading At A 49% Discount?
Key Insights
Balfour Beatty's estimated fair value is UK£7.33 based on 2 Stage Free Cash Flow to EquityBalfour Beatty is estimated to be 49% undervalued based on current share price of UK£3.72 The UK£4.26 analyst price target for BBY is 42% less than our estimate of fair value
How far off is Balfour Beatty plc (LON:BBY) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced 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. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.