Avery Dennison Corporation’s (NYSE:AVY) Intrinsic Value Is Potentially 77% Above Its Share Price
Key Insights
- The projected fair value for Avery Dennison is US$323 based on 2 Stage Free Cash Flow to Equity
- Avery Dennison is estimated to be 44% undervalued based on current share price of US$182
- The US$191 analyst price target for AVY is 41% less than our estimate of fair value
Today we will run through one way of estimating the intrinsic value of Avery Dennison Corporation (NYSE:AVY) by taking the expected future cash flows and discounting them to today’s value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you still…
