Key Insights
- The projected fair value for Trulieve Cannabis is CA$24.05 based on 2 Stage Free Cash Flow to Equity
- Trulieve Cannabis is estimated to be 47% undervalued based on current share price of CA$12.75
- Our fair value estimate is 5.6% lower than Trulieve Cannabis’ analyst price target of US$25.47
Today we’ll do a simple run through of a valuation method used to estimate the attractiveness of Trulieve Cannabis Corp. (CSE:TRUL) as an investment opportunity by estimating the company’s future cash flows and discounting them to their present value. This will be done using the Discounted Cash Flow (DCF) model. Don’t get put off by the jargon, the math behind it is actually quite straightforward.
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model….
