Published on 13 Dec 2023 on Simply Wall St. via Yahoo Finance
Are Peabody Energy Corporation (NYSE:BTU) Investors Paying Above The Intrinsic Value?
Key Insights
Peabody Energy's estimated fair value is US$17.27 based on Dividend Discount ModelCurrent share price of US$23.14 suggests Peabody Energy is potentially 34% overvalued The US$28.60 analyst price target for BTU is 66% more than our estimate of fair value
Does the December share price for Peabody Energy Corporation (NYSE:BTU) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them 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.