Analyst Estimates Alphabet Stock Undervalued by 23-30% Based on Discounted Cash Flow Models
• Uses discounted earnings model to estimate Alphabet's intrinsic value of $183 based on 10% discount rate and 19.6% growth rate • Currently trading at $141, so has 23% margin of safety • Follows two-stage model with high growth stage followed by terminal growth stage • Traditional DCF model based on free cash flow estimates intrinsic value of $198 • Consider limitations like reliance on assumptions and being better suited for predictable companies