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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (74981)	3/19/2024 1:14:05 PM
From: E_K_S	Read Replies (1) \| Respond to of 78486

UGI Discounted Cash Flow Analysis Discovered this site (GuruFocus.com) that provides this type of analysis for many/all stocks UGI Corp (UGI) DCF Valuation 30% undervalued DCF Valuation Analysis - DCF valuation is a financial analysis method used to estimate the value of an investment, company, or project based on its expected future cash flows. The key steps are: Forecast the expected future cash flows of the investment over a certain time period, as well as the terminal value at the end of the forecast period. 1 2 3 4 Determine an appropriate discount rate, often the weighted average cost of capital (WACC), to account for the time value of money. This discount rate is used to calculate the present value of the future cash flows. 1 3 4 Calculate the net present value (NPV) of the investment by summing the present values of all the future cash flows, including the terminal value. 1 2 3 4 Compare the calculated NPV to the initial investment cost. If the NPV is positive, the investment may be worthwhile. If the NPV is negative, the investment may not be profitable. 1 3 4 The main advantage of DCF analysis is that it can be applied to value a wide range of investments and assets, as long as their future cash flows can be reasonably estimated. However, the accuracy of the valuation is highly dependent on the assumptions used, such as the discount rate and cash flow projections. 1 2 3 4 ------------------------------------------ Links for DCF analysis for Macy's 46% undervalued & Nordstrom Inc (NYSE:JWN) 14% undervalued