Nuvalent's Fair Value Estimated at $150, 33% Undervalued Based on 2 Stage Free Cash Flow to Equity Model

Nuvalent, Inc. (NASDAQ:NUVL) is estimated to be 33% undervalued with a projected fair value of $150 based on the 2-stage free cash flow to equity model. The analyst price target is $119, which is 27% lower than the estimated fair value. The valuation is based on the discounted cash flow (DCF) model, which takes into account two stages of growth and estimates cash flows to the business over the next ten years. The model assumes a higher growth rate in the initial period and a stable growth rate in the second stage.