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AKA Brands Holding Corp
NYSE:AKA

Watchlist Manager
AKA Brands Holding Corp
NYSE:AKA
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Price: 1.52 USD +1.33% Market Closed
Updated: Jan 29, 2023

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Jan 29, 2023.

Estimated DCF Value of one AKA stock is 2.52 USD. Compared to the current market price of 1.52 USD, the stock is Undervalued by 40%.

AKA DCF Value
Base Case
2.52 USD
Undervaluation 40%
DCF Value
Price
A
Worst Case
Base Case
Best Case
2.52
DCF Value
Worst Case
Base Case
Best Case
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DCF Value: 2.52 USD
AKA Brands Holding Corp Competitors:
DCF Valuation
ROO
Deliveroo PLC
3542
Vega Corporation Co Ltd
3660
Istyle Inc
PRCH
Porch Group Inc
CHWY
Chewy Inc
4755
Rakuten Group Inc
DHER
Delivery Hero SE
4380
M-mart Inc

Present Value Calculation

The first step in the DCF calculation process is to estimate the company's future free cash flow. Once free cash flow is forecasted, it is discounted at a risk-appropriate discount rate. The resulting value is the present value of the company's free cash flow. You can change any model inputs below.

Available Valuation Models
1 valuation model available
Alpha Spread
Updated on Jan 29, 2023
Default Valuation
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Other investors haven't shared any valuation models for AKA Brands Holding Corp.
Model Settings
Discount Rate
8.44%
Forecast Period
5 Years
Terminal Growth
0%
Discount Rate
8.44%
Terminal Growth
0%
Growth Period
5 Years
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DCF Model
Base Case Scenario

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DCF Model

To view the process of deriving the DCF Value of one share from the estimated Present Value, see the DCF Value Calculation block.

DCF Value Calculation

Depending on which type of operating model is chosen (equity or whole firm valuation model), the resulting value is either the value of equity or the value of the entire firm. In the case of the latter, to move from the value of the firm to the value of equity, liabilities are subtracted and assets are added.

Capital Structure
From Present Value to DCF Value

Present Value 324M USD
Equity Value 324M USD
/ Shares Outstanding 129M
AKA DCF Value 2.52 USD
Undervalued by 40%

To view the process of calculating the Present Value of AKA Brands Holding Corp' future free cash flow, see the Present Value Calculation block.

Valuation Analysis

After the valuation process, in order to gain a deeper understanding of the relationship between risk and opportunity, it is useful to study the dynamic of company's valuation under various inputs to the DCF model in use.

DCF Financials
Financials used in DCF Calculation

Revenue
631M 919M
Net Income
837k 32.2M
FCFE
837k 32.2M

Sensitivity Analysis
DCF Value Sensitivity Analysis

See Also

Similar Stocks
What is the DCF value of one AKA stock?

Estimated DCF Value of one AKA stock is 2.52 USD. Compared to the current market price of 1.52 USD, the stock is Undervalued by 40%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Using the DCF Operating Model we project AKA Brands Holding Corp's future free cash flow and discount it at a selected discount rate to calculate its Present Value (324M USD).

2. DCF Value Calculation. We use the company's capital structure to calculate the total Equity Value based on the previously computed Present Value of the free cash flow. Dividing the Equity Value by the number of shares outstanding gives us the DCF Value of 2.52 USD per one AKA share.