I recently started practicing the DCF method for valuation on some stocks. I use the historical data about revenue, EBIT, etc. that I find on EDGAR of the company and use the changes in these values combined with the forecasts of Wall str. of the next two years (2024 and 2025) to create 3 scenarios of evolution per metric.
After completing a DCF valuation of ACI (or Albertsons Companies), the conclusion of my calculations is that the stock would be severely undervalued. The stock is at the time of writing this post priced at $ 20.11. Using my most pessimistic predictions, the stock would still be undervalued by $ 51.33.
Have I made a mistake somewhere in my calculations, or is this stock actually this undervalued?
The DCF valuation:
The WACC calculation:
[link] [comments] https://www.reddit.com/r/stocks/comments/13oslg9/aci_severely_undervalued_or_inaccurate_dcf/
Login to add comment
Other posts in this group
Please use this thread to discuss your portfolio, learn of other stock tickers, and help out users by giving constructive criticism.
Why quarterly? Public comp
When you sell a stock to buy another stock, do you prefer to set the estimated amount of the capital gains taxes aside in a money market or do you think it better to
Saving for retirement is crucial, but relying solely on a 401(k) might not be enough due to high inflation. Consider investing in growth stocks, especially in the tec
I’m think this is not a good investment as there is no chatter at all on the 52 week low. They are involved in a class action lawsuits by investors and credit card co
Sorry if this is the wrong sub. Let’s say I had $1 million in VOO but I wanted to sell half of it to buy SCHD. It would suck to pay taxes on $500k. So how would you g
Hey guys, I did a deep dive into Crocs. In this analysis, I will do a brief breakdown of the company and go over some quantitative data, qualitative data and estimate
