Published on 3 Jun 2023 on Simply Wall St. via Yahoo Finance
Is There An Opportunity With AcuityAds Holdings Inc.'s (TSE:ILLM) 50% Undervaluation?
Key Insights
AcuityAds Holdings' estimated fair value is CA$4.78 based on 2 Stage Free Cash Flow to EquityAcuityAds Holdings' CA$2.40 share price signals that it might be 50% undervalued Analyst price target for ILLM is CA$3.65 which is 24% below our fair value estimate
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of AcuityAds Holdings Inc. (TSE:ILLM) as an investment opportunity by taking the forecast future cash flows of the company and discounting them back to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Believe it or not, it's not too difficult to follow, as you'll see from our example!