Published on 10 Jun 2023 on Simply Wall St. via Yahoo Finance
Is There An Opportunity With Arco Platform Limited's (NASDAQ:ARCE) 32% Undervaluation?
Key Insights
The projected fair value for Arco Platform is US$17.74 based on 2 Stage Free Cash Flow to EquityArco Platform's US$12.07 share price signals that it might be 32% undervaluedOur fair value estimate is similar to Arco Platform's analyst price target of R$17.67
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Arco Platform Limited (NASDAQ:ARCE) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!