Published on 13 Jan 2024 on Simply Wall St. via Yahoo Finance
Estimating The Fair Value Of Croda International Plc (LON:CRDA)
Key Insights
The projected fair value for Croda International is UK£38.38 based on 2 Stage Free Cash Flow to EquityCurrent share price of UK£44.05 suggests Croda International is potentially trading close to its fair valueThe UK£49.65 analyst price target for CRDA is 29% more than our estimate of fair value
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Croda International Plc (LON:CRDA) as an investment opportunity by taking the expected future cash flows and discounting them to today's 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.