Autohome Inc. (ATHM) Intrinsic Value

DCF-based fair value calculation with Bear, Base, and Bull scenarios

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Autohome Inc. (ATHM)

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Intrinsic Value (DCF)

Current$23.24
Intrinsic$197.21
+749%
$139.09$197.21$307.70
Market implies 1% growth for 5 years
DCF analysis suggests ATHM could have 749% upside at 8% growth — verify assumptions match your view.
At $23, the market prices in only 1% growth — below historical 8%, suggesting low expectations.
Range: Bear $139 → Bull $308. Current price implies expectations below the bear case — very conservative expectations.
Discount ↓Growth →4%6%8%10%
8%$231$251$273$296
10%$169$182$197$213
12%$134$144$155$167
14%$112$120$129$138

Bull Case

  • Bull case ($308) offers 1224% upside at 10% growth, 9% discount
  • Price below even worst-case scenario — strong margin of safety
  • Market-implied growth (1%) ≤ historical CAGR (8%)

Bear Case

  • Bear case ($139) with 6% growth, 12% discount rate
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5-Year Free Cash Flow Projection

Year 1$1.33B
Year 2$1.44B
Year 3$1.55B
Year 4$1.68B
Year 5$1.81B
Terminal$26.66B

📐 Model Inputs

Growth Rate8.0%5Y CAGR (cascade: 5Y→3Y→TTM)
Discount Rate10.0%WACC estimate
Terminal Growth3.0%Perpetuity rate
Base Free Cash Flow$1.23BTTM actual
Bear g×0.8, r+2%
Base Historical CAGR
Bull g×1.2, r−1.5%
ℹ️

DCF estimates based on historical growth rates extrapolated forward. See FAQ below for full methodology.

Frequently Asked Questions

Is ATHM stock undervalued or overvalued?
🟢 UNDERVALUED

ATHM trades at $23.24 vs. our DCF-derived intrinsic value of $197.21, implying +300% upside. At a 10.0% WACC and 8.0% projected FCF growth, the market appears to be underpricing the present value of ATHM's future cash flows. The bear case ($146.48) still suggests upside, providing margin of safety.

What is ATHM's intrinsic value?

Using a 5-year DCF model: Base FCF of $1.23B, projected at 8.0% 5Y CAGR (best of revenue, EPS, or FCF growth), discounted at 10.0% WACC, with 3.0% terminal growth. Terminal value calculated via Gordon Growth Model: TV = FCF₅ × (1+g) / (WACC−g). After deducting $-1.60B net debt and dividing by 0.12B shares: Bear $146.48 | Base $197.21 | Bull $265.05. Current price $23.24 implies +300% to base case.

How is ATHM's fair value calculated?

DCF Methodology:

① Project FCF years 1-5 using 8.0% growth derived from 5-year historical CAGR (best of revenue, EPS, or FCF growth, with 8% floor and 25% cap).

② Calculate terminal value at year 5 using perpetuity growth model with g=3.0%.

③ Discount all cash flows to PV using WACC=10.0%.

④ Sum PV of explicit period + PV of terminal value = Enterprise Value ($22.39B).

⑤ Subtract net debt, divide by shares outstanding.

Sensitivity analysis available above—adjust WACC ±2% or growth ±3% to stress-test the valuation. Implied EV/FCF multiple: 18.2x.