
A Discounted Cash Flow, or DCF, model estimates what a company might be worth today by projecting its future cash flows and then discounting those back into today’s dollars.
For Huron Consulting Group, the model uses a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month free cash flow is about $156.95 million. Simply Wall St then projects free cash flows out to 2035, with estimates such as $151.23 million in 2026 and $175.13 million in 2035. It then discounts each of these figures back to today using its cash flow projections method.
Based on these inputs, the model arrives at an estimated intrinsic value of about $197.59 per share. Compared to the recent share price of US$143.29, this suggests the stock is roughly 27.5% undervalued on this DCF view.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Huron Consulting Group is undervalued by 27.5%. Track this in your watchlist or portfolio, or discover 54 more high quality undervalued stocks.
For a profitable company like Huron Consulting Group, the P/E ratio is a useful way to relate what you pay per share to the earnings the business is currently generating. Investors usually accept a higher or lower P/E depending on what they expect for future earnings growth and how much risk they see in those earnings.
Huron currently trades on a P/E of 21.7x. That sits above the Professional Services industry average of 20.6x and the peer average of 19.4x, so the stock trades at a higher earnings multiple than these simple benchmarks suggest. On Simply Wall St, the “Fair Ratio” for Huron, based on its earnings growth profile, margins, industry and market cap, is 26.4x.
The Fair Ratio is designed to be a more tailored yardstick than a basic peer or industry comparison because it builds in company specific factors such as growth, risks and profitability rather than treating all Professional Services businesses as the same. Comparing Huron’s current P/E of 21.7x with the Fair Ratio of 26.4x points to the shares trading below that customised benchmark.
Result: UNDERVALUED
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Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives, which are simple stories you and other investors create on Simply Wall St’s Community page. These connect your view of Huron Consulting Group’s business to specific forecasts for revenue, earnings, margins and a Fair Value that you can then compare with the current share price. This helps you judge whether the stock looks attractive, keep track of how that view changes as fresh news or earnings arrive, and see how different investors can look at the same company in very different ways. For example, one Narrative might lean toward the bullish US$240.00 Fair Value, while another leans closer to the more cautious US$165.00 Fair Value. This gives you a clear, numbers backed way to decide what story you believe and what that implies for your own decisions.
Do you think there's more to the story for Huron Consulting Group? Head over to our Community to see what others are saying!
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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