Is There An Opportunity With The Vita Coco Company, Inc.’s (NASDAQ:COCO) 35% Undervaluation?

Source: Shutterstock Key Insights Vita Coco Company’s estimated fair value is US$26.02 based on 2 Stage Free Cash Flow to Equity Current share price of US$16.91 suggests Vita Coco Company is potentially 35% undervalued Analyst price target for COCO is US$15.83 which is 39% below our fair value estimate Today we’ll do a simple run through of a valuation method used to estimate the attractiveness of The Vita Coco Company, Inc. ( NASDAQ:COCO ) as an investment opportunity by estimating the company’s future cash flows and discounting them to their present value. Our analysis will employ the Discounted Cash Flow (DCF) model. Believe it or not, it’s not too difficult to follow, as you’ll see from our example! Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. 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 . See our latest analysis for Vita Coco Company Is Vita Coco Company Fairly Valued? We use what is known as a 2-stage model, which simply means we have two different […]

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