Published on 1 Apr 2024 on Simply Wall St. via Yahoo Finance
Are AO World plc (LON:AO.) Investors Paying Above The Intrinsic Value?
Key Insights
The projected fair value for AO World is UK£0.79 based on 2 Stage Free Cash Flow to EquityCurrent share price of UK£1.01 suggests AO World is potentially 28% overvalued The UK£0.93 analyst price target for AO. is 19% more than our estimate of fair value
Does the April share price for AO World plc (LON:AO.) 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 their present value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Believe it or not, it's not too difficult to follow, as you'll see from our example!