Roblox Corporation’s (NYSE:RBLX) Intrinsic Value Is Potentially 23% Below Its Share Price
-
Roblox’s estimated fair value is US$66.86 based on 2 Stage Free Cash Flow to Equity
-
Roblox’s US$86.98 share price signals that it might be 30% overvalued
-
Our fair value estimate is 12% lower than Roblox’s analyst price target of US$75.88
In this article we are going to estimate the intrinsic value of Roblox Corporation (NYSE:RBLX) by estimating the company’s future cash flows and discounting them to their present value. Our analysis will employ the Discounted Cash Flow (DCF) model. Before you think you won’t be able to understand it, just read on! It’s actually much less complex than you’d imagine.
We generally believe that a company’s value is the present value of all of the cash it will generate in the future….
