Published on 20 Jun 2024 on Simply Wall St. · via Yahoo Finance
Burberry Group plc's (LON:BRBY) Intrinsic Value Is Potentially 34% Above Its...
Key Insights
The projected fair value for Burberry Group is UK£13.20 based on 2 Stage Free Cash Flow to EquityBurberry Group is estimated to be 25% undervalued based on current share price of UK£9.86 Analyst price target for BRBY is UK£11.60 which is 12% below our fair value estimate
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Burberry Group plc (LON:BRBY) as an investment opportunity by taking the expected 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.