Target Valuation

Target valuation is a method used to estimate the worth of a company based on its future potential. It involves projecting the company’s expected earnings or cash flows over time and discounting them back to their present value using an appropriate rate. Essentially, it’s like forecasting how much the company is worth today based on what it might achieve in the future. This approach helps investors and analysts determine if a company is a good investment or a fair price compared to its future earnings prospects.