Published on 17 Nov 2023 on Simply Wall St. via Yahoo Finance
Key Insights
Using the Dividend Discount Model, Taylor Wimpey fair value estimate is UK£1.13Current share price of UK£1.23 suggests Taylor Wimpey is potentially trading close to its fair valueOur fair value estimate is 15% lower than Taylor Wimpey's analyst price target of UK£1.33
How far off is Taylor Wimpey plc (LON:TW.) 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 forecast future cash flows of the company and discounting them back to today's value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. There's really not all that much to it, even though it might appear quite complex.