Is There An Opportunity With Deezer S.A.’s (EPA:DEEZR) 49% Undervaluation?

Source: Shutterstock Key Insights Deezer’s estimated fair value is €4.58 based on 2 Stage Free Cash Flow to Equity Deezer’s €2.34 share price signals that it might be 49% undervalued Analyst price target for DEEZR is €3.08 which is 33% below our fair value estimate Does the March share price for Deezer S.A. ( EPA:DEEZR ) reflect what it’s really worth? Today, we will estimate the stock’s intrinsic value by taking the expected future cash flows and discounting them to today’s value. Our analysis will employ the Discounted Cash Flow (DCF) model. Before you think you won’t be able to understand it, just read on! It’s actually much less complex than you’d imagine. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model . View our latest analysis for Deezer What’s The Estimated Valuation? We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company’s […]

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