AO Relative Valuation - AO World PLC - Alpha Spread

AO World PLC
LSE:AO

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AO World PLC
LSE:AO
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Price: 109.6 GBX 1.29% Market Closed
Market Cap: 635.1m GBX
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Relative Value

The Relative Value of one AO stock under the Base Case scenario is 127.27 GBX. Compared to the current market price of 109.6 GBX, AO World PLC is Undervalued by 14%.

Relative Value is the estimated value of a stock based on various valuation multiples like P/E and EV/EBIT ratios. It offers a quick snapshot of a stock's valuation in relation to its peers and historical norms.

AO Relative Value
Base Case
127.27 GBX
Undervaluation 14%
Relative Value
Price
Worst Case
Base Case
Best Case

Valuation Multiples

vs History
31
vs Industry
39
Median 3Y
0.4
Median 5Y
0.5
Industry
0.5
Forward
0.5
vs History
34
vs Industry
17
Median 3Y
-10.7
Median 5Y
-6.8
Industry
16.4
Forward
21.1
vs History
39
vs Industry
26
Median 3Y
8.2
Median 5Y
9.3
Industry
7.7
vs History
7
vs Industry
16
Median 3Y
-9.9
Median 5Y
-10.5
Industry
15.4
vs History
61
vs Industry
12
Median 3Y
4.6
Median 5Y
4.8
Industry
1.6
vs History
31
vs Industry
43
Median 3Y
0.5
Median 5Y
0.5
Industry
0.7
Forward
0.6
vs History
38
vs Industry
34
Median 3Y
2.2
Median 5Y
2.5
Industry
2.2
vs History
84
vs Industry
25
Median 3Y
14
Median 5Y
20.2
Industry
8.4
Forward
9.4
vs History
44
vs Industry
20
Median 3Y
17.5
Median 5Y
16.5
Industry
12.8
Forward
15.2
vs History
39
vs Industry
28
Median 3Y
8.8
Median 5Y
9.6
Industry
8.8
vs History
36
vs Industry
31
Median 3Y
9.6
Median 5Y
10.5
Industry
12.1
vs History
25
vs Industry
9
Median 3Y
2.6
Median 5Y
2.7
Industry
1

Multiples Across Competitors

AO Competitors Multiples
AO World PLC Competitors

All Multiples
P/S
P/E
EV/EBITDA
EV/EBIT
All Countries
Close
Market Cap P/S P/E EV/EBITDA EV/EBIT
UK
AO World PLC
LSE:AO
634.1m GBP 0.6 25.7 10.7 17.9
NL
Prosus NV
JSE:PRX
4.2T Zac 0 0 0 0
US
Amazon.com Inc
NASDAQ:AMZN
2T USD 3.2 44 18.6 35.6
ZA
Naspers Ltd
JSE:NPN
718.4B Zac 0 0 0 0
CN
Alibaba Group Holding Ltd
NYSE:BABA
201.2B USD 1.5 20.5 10.8 10.8
CN
Pinduoduo Inc
NASDAQ:PDD
131.9B USD 2.7 9.5 6.7 6.7
AR
Mercadolibre Inc
NASDAQ:MELI
107.1B USD 6.1 76.6 37.9 48.2
UY
MercadoLibre Inc
BMV:MELIN
2.1T MXN 6.3 78.5 38.9 49.4
CN
Meituan
HKEX:3690
780.8B HKD 2.3 31.8 19.7 26.4
US
DoorDash Inc
F:DD2
48.9B EUR 5.6 -133.2 609.4 -107.5
KR
Coupang Inc
NYSE:CPNG
42.9B USD 1.6 40.8 59 124.7
P/E Multiple
Earnings Growth
UK
AO World PLC
LSE:AO
Average P/E: 40.9
25.7
54%
NL
P
Prosus NV
JSE:PRX
Not Available
44%
US
Amazon.com Inc
NASDAQ:AMZN
44
163%
ZA
N
Naspers Ltd
JSE:NPN
Not Available
79%
CN
Alibaba Group Holding Ltd
NYSE:BABA
20.5
141%
CN
Pinduoduo Inc
NASDAQ:PDD
9.5
186%
AR
Mercadolibre Inc
NASDAQ:MELI
76.6
233%
UY
MercadoLibre Inc
BMV:MELIN
78.5
226%
CN
Meituan
HKEX:3690
31.8
282%
US
D
DoorDash Inc
F:DD2
Negative Multiple: -133.2 N/A
KR
Coupang Inc
NYSE:CPNG
40.8
19%
EV/EBITDA Multiple
EBITDA Growth
UK
AO World PLC
LSE:AO
Average EV/EBITDA: 90.2
10.7
42%
NL
P
Prosus NV
JSE:PRX
Not Available N/A
US
Amazon.com Inc
NASDAQ:AMZN
18.6
133%
ZA
N
Naspers Ltd
JSE:NPN
Not Available
1 571%
CN
Alibaba Group Holding Ltd
NYSE:BABA
10.8
37%
CN
Pinduoduo Inc
NASDAQ:PDD
6.7
262%
AR
Mercadolibre Inc
NASDAQ:MELI
37.9
142%
UY
MercadoLibre Inc
BMV:MELIN
38.9
142%
CN
Meituan
HKEX:3690
19.7
290%
US
D
DoorDash Inc
F:DD2
609.4
N/A
KR
Coupang Inc
NYSE:CPNG
59
261%
EV/EBIT Multiple
EBIT Growth
UK
AO World PLC
LSE:AO
Average EV/EBIT: 40
17.9
59%
NL
P
Prosus NV
JSE:PRX
Not Available N/A
US
Amazon.com Inc
NASDAQ:AMZN
35.6
171%
ZA
N
Naspers Ltd
JSE:NPN
Not Available N/A
CN
Alibaba Group Holding Ltd
NYSE:BABA
10.8
50%
CN
Pinduoduo Inc
NASDAQ:PDD
6.7
290%
AR
Mercadolibre Inc
NASDAQ:MELI
48.2
168%
UY
MercadoLibre Inc
BMV:MELIN
49.4
168%
CN
Meituan
HKEX:3690
26.4
485%
US
D
DoorDash Inc
F:DD2
Negative Multiple: -107.5 N/A
KR
Coupang Inc
NYSE:CPNG
124.7
330%

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