Is There An Opportunity With Paymentus Holdings, Inc.’s (NYSE:PAY) 44% Undervaluation?

Source: Shutterstock Key Insights Paymentus Holdings’ estimated fair value is US$15.3 based on 2 Stage Free Cash Flow to Equity Current share price of US$8.6 suggests Paymentus Holdings is 44% undervalued In this article we are going to estimate the intrinsic value of Paymentus Holdings, Inc. ( NYSE:PAY ) 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. Models like these may appear beyond the comprehension of a lay person, but they’re fairly easy to follow. Remember though, that there are many ways to estimate a company’s value, and a DCF is just one method. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model . The Method We’re using the 2-stage growth model, which simply means we take in account two stages of company’s growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where […]

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