[ad_1]
Andes Technology Corporation’s projected fair value is estimated to be NT$330 based on a 2 stage Free Cash Flow to Equity model. However, the current share price of NT$403 suggests that the company may be overvalued by 22%. Despite this, the fair value estimate is 31% lower than the analyst price target of NT$479.
In this article, we delve into how the intrinsic value of Andes Technology is calculated using the Discounted Cash Flow (DCF) model. This model projects the company’s future cash flows and discounts them to their present value. The analysis involves estimating ten years of cash flows, calculating the Terminal Value, and determining the equity value. After dividing the equity value by the number of shares outstanding, it is found that the company is slightly overvalued compared to the current share price.
The DCF model is only one of many factors to consider when assessing a company’s value. Other aspects to look into for Andes Technology include its financial health, future earnings potential, and other high-quality alternatives in the market.
It’s important to note that the DCF calculation is based on certain assumptions, such as the discount rate and cash flows, which can be adjusted to see how they impact the company’s valuation. Ultimately, investors should conduct thorough research and consider various factors before making investment decisions.
Source
Photo credit simplywall.st
