Published on 21 Apr 2024 on Simply Wall St. via Yahoo Finance
Are Investors Undervaluing Smart Share Global Limited (NASDAQ:EM) By 34%?
Key Insights
Smart Share Global's estimated fair value is US$0.97 based on 2 Stage Free Cash Flow to EquityCurrent share price of US$0.64 suggests Smart Share Global is potentially 34% undervaluedPeers of Smart Share Global are currently trading on average at a 3,787% premium
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Smart Share Global Limited (NASDAQ:EM) as an investment opportunity by taking the expected future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. Don't get put off by the jargon, the math behind it is actually quite straightforward.