Published on 23 Oct 2023 on Simply Wall St. via Yahoo Finance
AO World plc's (LON:AO.) Intrinsic Value Is Potentially 53% Above Its Share Price
Key Insights
The projected fair value for AO World is UK£1.26 based on 2 Stage Free Cash Flow to EquityCurrent share price of UK£0.82 suggests AO World is potentially 34% undervaluedOur fair value estimate is 50% higher than AO World's analyst price target of UK£0.84
In this article we are going to estimate the intrinsic value of AO World plc (LON:AO.) by taking the forecast future cash flows of the company and discounting them back to today's value. This will be done using the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!