OPRA
Opera Limited
$18.82
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 59.4% below fair value
You pay
$18.82
Bear
$27.46
Fair
$46.32
Bull
$68.97
Bear
$27.46
+45.9%
11% stage 1 growth, 11% discount
Fair
$46.32
+146.1%
18% stage 1 growth, 11% discount
Bull
$68.97
+266.4%
24% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (18% base case)
Terminal Value % of EV
45%
Implied Market Multiple
13.4x
Market is pricing in (growth)
3.5%
vs 18.1% base
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $21.25 from 7 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $46.32 per share.
Warnings
Wall Street's average price target is $21.25 (from 7 analysts). Our estimate is 147% above the consensus -- consider that gap carefully.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions