Estimating The Intrinsic Value Of China Renewable Energy Investment Limited (HKG:987)
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January 12, 2021
Today we will run through one way of estimating the intrinsic value of China Renewable Energy Investment Limited (HKG:987) by taking the expected future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. 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 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.