Source: Shutterstock Key Insights General Dynamics’ estimated fair value is US$312 based on 2 Stage Free Cash Flow to Equity Current share price of US$232 suggests General Dynamics is potentially 26% undervalued Our fair value estimate is 14% lower than General Dynamics’ analyst price target of US$268 Today we will run through one way of estimating the intrinsic value of General Dynamics Corporation ( NYSE:GD ) by taking the forecast future cash flows of the company and discounting them back to today’s value. We will use the Discounted Cash Flow (DCF) model on this occasion. 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. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model . See our latest analysis for General Dynamics The Calculation We’re using the 2-stage growth model, which simply means we take in account two […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
