Breedon Group plc’s (LON:BREE) Intrinsic Value Is Potentially 65% Above Its Share Price

  • The projected fair value for Breedon Group is UK£7.37 based on 2 Stage Free Cash Flow to Equity

  • Breedon Group’s UK£4.48 share price signals that it might be 39% undervalued

  • Our fair value estimate is 41% higher than Breedon Group’s analyst price target of UK£5.25

How far off is Breedon Group plc (LON:BREE) from its intrinsic value? Using the most recent financial data, we’ll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Believe it or not, it’s not too difficult to follow, as you’ll see from our example!

Companies can be valued in a lot of ways, so we would…

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