Published on 18 Jul 2023 on Simply Wall St. via Yahoo Finance
Is Bayer Aktiengesellschaft (ETR:BAYN) Trading At A 46% Discount?
Key Insights
Using the 2 Stage Free Cash Flow to Equity, Bayer fair value estimate is €92.75Bayer's €50.22 share price signals that it might be 46% undervaluedOur fair value estimate is 31% higher than Bayer's analyst price target of €70.90
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Bayer Aktiengesellschaft (ETR:BAYN) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.