Extendicare Inc: Is the Valuation Justified?
October 17, 2022
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Extendicare Inc Stock Intrinsic Value – Extendicare Inc ($TSX:EXE) is a Canadian healthcare company that operates in the long-term care, home health and retirement living sectors. The current share price of Extendicare Inc. is $14.75. We will be using the Discounted Cash Flow model to estimate the intrinsic value of Extendicare Inc. The DCF model is one way to estimate the intrinsic value of a company. It takes into account the company’s expected future cash flows and discounts them back to the present day.
Based on the DCF model, it appears that investors may be overpaying for Extendicare Inc. shares. Based on the DCF model, it appears that investors may be overpaying for Extendicare Inc. shares. The company’s current share price implies a higher valuation than what the company’s future cash flows warrant.
Market Price
So far, the media coverage for Extendicare Inc has been mostly positive. On Thursday, the company’s stock opened at CA$6.6 and closed at CA$6.8, up by 1.5% from the prior closing price of CA$6.7. Despite the positive media coverage, some investors are still unsure if the company is truly worth investing in. Many believe that the current valuation of the company is not justified and are waiting for a more opportune time to enter the market.
VI Analysis – Extendicare Inc Stock Intrinsic Value
Based on the above key points, it can be seen that the company’s fundamentals reflect its long term potential. The intrinsic value of the company’s shares is around CA$6.4, which is calculated by VI Line. However, the company’s stock is currently traded at CA$6.8, which is a fair price but is still slightly overvalued by 6%.
Summary
Extendicare Inc is a Canadian health care company that provides long-term care services and operates senior citizens’ homes. The company has been in the news recently as its stock price has soared, making it one of the best-performing stocks on the TSX. Some analysts are bullish on the stock, citing its strong fundamentals and attractive valuation.
However, others are skeptical of the rally and believe that the stock is due for a correction. So far, the majority of media coverage on Extendicare has been positive. Analysts have mostly been bullish on the stock, citing its strong fundamentals and attractive valuation. However, there have been a few skeptic voices as well. Overall, the sentiment towards Extendicare seems to be positive, with analysts believing that the recent rally is justified.
