Perenti Limited’s (ASX:PRN) Intrinsic Value Is Potentially 99% Above Its Share Price
Key Insights
- Perenti’s estimated fair value is AU$5.74 based on 2 Stage Free Cash Flow to Equity
- Perenti is estimated to be 50% undervalued based on current share price of AU$2.89
- Analyst price target for PRN is AU$2.56 which is 55% below our fair value estimate
Today we’ll do a simple run through of a valuation method used to estimate the attractiveness of Perenti Limited (ASX:PRN) as an investment opportunity by taking the expected future cash flows and discounting them to today’s value. Our analysis will employ the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
We generally believe that a company’s value is the present value of all of the cash it will generate in the future….
