Published on 23 Nov 2023 on Simply Wall St. via Yahoo Finance
iQIYI, Inc.'s (NASDAQ:IQ) Intrinsic Value Is Potentially 64% Above Its Share Price
Key Insights
iQIYI's estimated fair value is US$7.78 based on 2 Stage Free Cash Flow to EquityiQIYI's US$4.75 share price signals that it might be 39% undervaluedOur fair value estimate is 5.6% higher than iQIYI's analyst price target of CN¥7.37
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of iQIYI, Inc. (NASDAQ:IQ) as an investment opportunity by taking the expected future cash flows and discounting them to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. There's really not all that much to it, even though it might appear quite complex.