Published on 19 Sep 2023 on Simply Wall St. via Yahoo Finance
Calculating The Fair Value Of Dril-Quip, Inc. (NYSE:DRQ)
Key Insights
The projected fair value for Dril-Quip is US$28.06 based on 2 Stage Free Cash Flow to EquityCurrent share price of US$28.80 suggests Dril-Quip is potentially trading close to its fair valueOur fair value estimate is 12% lower than Dril-Quip's analyst price target of US$32.00
Today we will run through one way of estimating the intrinsic value of Dril-Quip, Inc. (NYSE:DRQ) by estimating the company's future cash flows and discounting them to their present value. Our analysis will employ the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex.