July 3, 2023
Key Insights
The projected fair value for Federal Signal is US$73.36 based on 2 Stage Free Cash Flow to Equity
Federal Signal’s US$64.03 share price indicates it is trading at similar levels as its fair value estimate
Analyst price target for FSS is US$61.60 which is 16% below our fair value estimate
Does the July share price for Federal Signal Corporation (NYSE:FSS) reflect what it’s really worth? Today, we will estimate the stock’s intrinsic value by taking the expected future cash flows and discounting them to today’s value. The Discounted Cash Flow (DCF) model is the tool we will apply…