Published on 18 Oct 2023 on Simply Wall St. via Yahoo Finance
Estimating The Intrinsic Value Of Fortescue Metals Group Limited (ASX:FMG)
Key Insights
Fortescue Metals Group's estimated fair value is AU$18.45 based on Dividend Discount ModelCurrent share price of AU$21.83 suggests Fortescue Metals Group is potentially trading close to its fair valueOur fair value estimate is 1.2% lower than Fortescue Metals Group's analyst price target of US$18.68
In this article we are going to estimate the intrinsic value of Fortescue Metals Group Limited (ASX:FMG) by taking the forecast future cash flows of the company and discounting them back to today's value. This will be done using the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex.