Baoshan Iron & Steel Co., Ltd. (SHSE:600019) Shares Could Be 44% Below Their Intrinsic Value Estimate

Does the July share price for Baoshan Iron & Steel Co., Ltd. (SHSE:600019) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by projecting its future cash flows and then discounting them to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. It may sound complicated, but actually it is quite simple!

We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. 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.