Dyno Nobel Limited’s (ASX:DNL) Intrinsic Value Is Potentially 45% Above Its Share Price
Key Insights
- Dyno Nobel’s estimated fair value is AU$4.32 based on 2 Stage Free Cash Flow to Equity
- Dyno Nobel is estimated to be 31% undervalued based on current share price of AU$2.97
- The AU$2.98 analyst price target for DNL is 31% less than our estimate of fair value
Today we will run through one way of estimating the intrinsic value of Dyno Nobel Limited (ASX:DNL) by taking the expected future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. 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. For those who are keen…
