Vesuvius has put up a solid share price run in recent years, which puts fresh focus on whether the current valuation is supported by the cash the business can generate. With the stock now trading around £4.63, the immediate question is how that price lines up with the value implied by its future cash flows.

• Over the last 5 years the share price has returned 38.1%, which raises the issue of how much cash flow strength is already reflected in today's valuation.

• The company's ability to convert its industrial operations into reliable free cash flow, and how much reinvestment those activities require, can make a material difference to what long term holders are really paying for.

• If you'd rather focus on earnings, this one's for you. See what Vesuvius's 29.8x P/E says about the price .

For investors, the debate is whether the current share price of Vesuvius is justified by the intrinsic value suggested by its projected cash flows.

If you are weighing Vesuvius against other options that hinge on cash flow strength, it can help to compare it with 7 high quality undervalued stocks

Is Vesuvius Still Cheap on Cash Flow?

The Discounted Cash Flow model here looks at the cash that Vesuvius can return to shareholders over time and discounts it back to today. The latest twelve month free cash flow sits at about £69.4 million, so the framework is starting from a positive cash base rather than a turnaround story.

Analyst projections used in the model point to growing free cash flow in the coming years, with estimates rising from that starting point instead of flattening out. On those cash flow assumptions, the DCF output suggests an estimated intrinsic value that is substantially above the current £4.63 share price, which implies the market is not fully pricing in the projected cash generation. Find out what Vesuvius could be worth using our Discounted Cash Flow (DCF) estimate .

The Vesuvius Narrative: What Would Justify Today's Price?

Narratives for Vesuvius pick up where the cash flow puzzle leaves off and spell out what specific paths for revenue growth, margins and earnings would need to play out for the stock to be worth materially more or materially less than today's price on Simply Wall St's Community page. Instead of a single output from a ratio or model, Vesuvius' Narratives set out the future that number relies on so you can watch how reality matches the script.

Community views on Vesuvius are split between a mild undervaluation story and a more cautious view that sees limited upside once the risks are considered.