I am going to run you through how I calculated the intrinsic value of Lombard Risk Management plc (AIM:LRM) by taking the expected future cash flows and discounting them to today’s value. This is done using the discounted cash flows (DCF) model. It may sound complicated, but actually it is quite simple! Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. If you are reading this and its not April 2018 then I highly recommend you check out the latest calculation for Lombard Risk Management by following the link below. Check out our latest analysis for Lombard Risk Management
The calculation
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage…
