Published on 20 Nov 2023 on Simply Wall St. via Yahoo Finance
An Intrinsic Calculation For TomTom N.V. (AMS:TOM2) Suggests It's 42% Undervalued
Key Insights
Using the 2 Stage Free Cash Flow to Equity, TomTom fair value estimate is €10.88Current share price of €6.29 suggests TomTom is potentially 42% undervalued The €9.50 analyst price target for TOM2 is 13% less than our estimate of fair value
Does the November share price for TomTom N.V. (AMS:TOM2) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by projecting its future cash flows and then discounting them to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex.