Intinsic Value of AA £1.6311 Mar 2018 07:56
From simply wall street 2nd March
Great news for investors – AA is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is £1.63, but it is currently trading at UK£0.73 on the share market, meaning that there is still an opportunity to buy now. AA’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.