CSL Limited’s (ASX:CSL) Intrinsic Value Is Potentially 43% Above Its Share Price
Key Insights
- CSL’s estimated fair value is AU$408 based on 2 Stage Free Cash Flow to Equity
- CSL is estimated to be 30% undervalued based on current share price of AU$285
- Our fair value estimate is 20% higher than CSL’s analyst price target of US$340
Does the January share price for CSL Limited (ASX:CSL) 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. We will use the Discounted Cash Flow (DCF) model on this occasion. It may sound complicated, but actually it is quite simple!
We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain…
