Wesfarmers Limited's (ASX:WES) Intrinsic Value Is Potentially 20% Below Its Share Price

Published on 19 Jan 2022 on Simply Wall St. via Yahoo Finance

Wesfarmers Limited's (ASX:WES) Intrinsic Value Is Potentially 20% Below Its Share Price

Today we will run through one way of estimating the intrinsic value of Wesfarmers Limited (ASX:WES) by projecting its future cash flows and then discounting them to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. It may sound complicated, but actually it is quite simple!

Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

View our latest analysis for Wesfarmers

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Wesfarmers Limited's (ASX:WES) Intrinsic Value Is Potentially 20% Below Its Share Price

ASX.WES price evolution

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