OPRA
Opera Limited
$17.43
Platform & Compounding FCF
85%
Two-stage FCF DCF
Strong
·
Conviction
Undervalued
Trading 62.4% below fair value
You pay
$17.43
Bear
$27.49
Fair
$46.37
Bull
$69.04
Bear
$27.49
+57.7%
11% stage 1 growth, 11% discount
Fair
$46.37
+166.0%
18% stage 1 growth, 11% discount
Bull
$69.04
+296.1%
24% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (18% base case)
Terminal Value % of EV
45%
Implied Market Multiple
12.3x
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 $21.50 from 7 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $46.37 per share.
Warnings
Wall Street's average price target is $21.50 (from 7 analysts). Our estimate is 145% 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