If we believe that companies can be accurately valued with a DCF model, which is the sum of ALL future cash flows to infinity, then the temporary lower cash flows for FY20 and FY21 is only a blip in the grand scheme of things.
Sure we’re facing lower cash flows for FY20 and FY21, but what about cash flows for FY25 onwards? Cash flows for FY30 onwards? Future cash flows (excluding FY20 and FY21) will still make up the bulk of DCFs, and could even be larger than pre-covid due to lots of smaller competition dying off.
I can see WEB permanently hold above $5 from here onwards.
WEB Price at posting:
$5.28 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)