Source: Shutterstock Key Insights Using the 2 Stage Free Cash Flow to Equity, Jabil fair value estimate is US$142 Jabil is estimated to be 42% undervalued based on current share price of US$82.68 Does the February share price for Jabil Inc. ( NYSE:JBL ) 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. Our analysis will employ the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple! Remember though, that there are many ways to estimate a company’s value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model . The Calculation We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second ‘steady growth’ period. In the first stage we need to estimate the cash flows to the business over […]
Is There An Opportunity With Jabil Inc.’s (NYSE:JBL) 42% Undervaluation?
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