Amassing Investment

# 📈 Intrinsic Value Analysis of STLA **Date:** July 26, 2024 **Prepared by:** Amassing Investment **Fiscal Year:** 2023-Q4 ## 📌 EXECUTIVE SUMMARY Stellantis N.V. (STLA) is a leading global automotive manufacturer, formed from the merger of Fiat Chrysler Automobiles and PSA Group. This report evaluates STLA's intrinsic value using a Discounted Cash Flow (DCF) analysis to provide insights into the stock's potential as an investment at its current market price of $18.10. ### 🎯 KEY TAKEAWAYS - **Intrinsic Value:** $95.87 per share (Base Case) - **Current Market Price:** $18.10 - **Commentary:** The stock is significantly undervalued by 429.99% based on its intrinsic value ## 🏢 COMPANY OVERVIEW - **Name:** Stellantis N.V. - **Ticker:** STLA - **Sector:** Consumer Cyclical - **Industry:** Auto - Manufacturers - **Market Cap:** $53.59 billion - **Key Brands:** Jeep, Peugeot, Fiat, Dodge, Chrysler, Citroën ## 🚗 INVESTING IN AUTO MANUFACTURERS: DRIVING GROWTH The auto manufacturing industry is poised for transformation, driven by electrification, autonomous driving technologies, and increased environmental regulations. Investing in this sector offers growth opportunities as companies innovate to meet evolving consumer demands and regulatory standards. With a focus on sustainability and connectivity, the auto industry is set to expand, presenting attractive opportunities for investors seeking exposure to technological advancements in mobility. ### 🚀 REVENUE FORECAST Stellantis has not a very strong revenue growth, but it’s capitalizing on its diverse brand portfolio and global presence. - **Current (ttm):** $98.63 billion - **Forecasted in Year 10:** $151.27 billion - **CAGR:** 4.37% ### 💵 FREE CASH FLOW TO FIRM (FCFF) Strong free cash flow enables Stellantis to invest in R&D and expand its electric vehicle offerings. - **Current:** $19.60 billion - **Forecasted in Year 10:** $18.43 billion (decreasing due to more tax payment in future) ### 📉 DISCOUNTED CASH FLOW (DCF) ANALYSIS The DCF method calculates the present value of Stellantis' future cash flows, factoring in: - **Revenue Growth Rate:** -0.62% to 7.76% annually (Year 1 to 5) - **Terminal Growth Rate:** 3.53% - **Discount Rate (WACC):** 7.21% ## 🧮 INTRINSIC VALUE CALCULATION: $95.87 (BASE CASE) The intrinsic value of STLA is $95.87 per share in the Base Case scenario, indicating a substantial undervaluation compared to its market price of $18.10. This analysis, along with other market factors, should be considered by investors when making investment decisions. ### 🔔 Disclaimer This report is for educational purposes only and does not constitute investment advice. Please consult with a financial advisor before making any investment decisions. Explore the full report here: (https://lnkd.in/gHiYg9S9) **You can also manipulate any of the assumptions from the manipulate input option. #stla #dcf #valueinvesting #amassinginvestment #intrinsicvalue

Elon Musk aims to make Tesla a leader in AI and robotics, requiring significant investment in Nvidia processors. Despite plans to increase Tesla's Nvidia H100 chips, internal Nvidia emails suggest Musk redirected a large shipment meant for Tesla to his social media company, X (formerly Twitter). This has delayed Tesla's AI development and caused shareholder concerns, especially given Tesla's recent financial and reputational challenges. Musk's commitments to his other ventures, including SpaceX, Neuralink, The Boring Company, and AI startup xAI, have further complicated Tesla's position. Nvidia struggles to meet GPU demand from major tech companies, affecting Musk's projects. Tesla's stock is down 29% this year, amidst increased competition and an aging product lineup. As Tesla faces increased competition and market pressures, the need for strategic focus is more critical than ever. 📉🤖 #Elonmusk #stockmarket #trading #Investmentstrategies #Tesla #Nvidia

UK inflation fell sharply to 2.3% in April, the lowest in nearly three years, driven by a 27.1% drop in energy bills and a decrease in food inflation to 2.8%. However, core inflation remained high at 3.9%, and services inflation barely budged at 5.9%. The Bank of England's interest rate cuts seem unlikely in June and possibly August due to these factors. #Inflation #Economy #InterestRate #StockMarket #Investing #Trading

In an attempt to curb China's tech power, the U.S. has revoked certain export licenses allowing the sale of chips to Huawei. A Commerce spokesperson stated, "As part of this process, as we have done in the past, we sometimes revoke export licenses," but declined to comment on specific licenses. However, they confirmed that some licenses for exports to Huawei have been revoked. Despite this, Huawei's consumer business is experiencing a resurgence following the launch of the Mate 60 Pro smartphone in August. #StockMarketNews #InvestingNews #News

TikTok filed a lawsuit against the U.S. government on Tuesday, challenging a law that mandates Chinese parent company ByteDance to sell the app or face a national ban. In April, President Biden signed legislation giving ByteDance nine months to find a buyer for the popular short-form video app, with a three-month extension possible if a deal is in progress. TikTok says the courts must balance First Amendment rights with national security concerns. #TikTok #StockMarketNews #InvestingNews

AI has disrupted numerous industries and revolutionized them. In 2021, as AI was still developing, Google's Deepmind AI, a creative artificial entity trained on a large dataset of amino acid and protein structures, made a breakthrough. As a result, the AI, originally created for entertainment purposes, came up with a new protein called Alphafold. Experts from leading AI companies say that within a very short time, AI could be able to create drugs that humans could never have imagined. #AMD #NVIDIA #AI #ArtificialIntelligence #StockMarket #Trading #InvestingNews #News

AI has disrupted numerous industries and revolutionized them. In 2021, as AI was still developing, Google's Deepmind AI, a creative artificial entity trained on a large dataset of amino acid and protein structures, made a breakthrough. As a result, the AI, originally created for entertainment purposes, came up with a new protein called Alphafold. Experts from leading AI companies say that within a very short time, AI could be able to create drugs that humans could never have imagined. #AMD #NVIDIA #AI #ArtificialIntelligence #StockMarket #Trading #InvestingNews #News

Google is cutting at least 200 employees from its "Core" organization, which encompasses key teams and engineering talent, according to CNBC reports. The company plans to fill corresponding roles in Mexico and India as part of a reorganization effort. Asim Husain, vice president of Google Developer Ecosystem, addressed the situation in an email to his team last week, acknowledging that such announcements may leave many feeling uncertain or frustrated. #Google #Alphabet #Layoff

Microsoft is making a bold move in Indonesia's tech landscape, announcing a substantial investment of $1.7 billion over the next four years. This investment will primarily focus on developing new cloud and AI infrastructure, signaling a significant commitment to the country's digital future. CEO Satya Nadella's meeting with Indonesian President Joko Widodo underscores the importance of this investment. Nadella emphasized the broader impact of these investments, stating that they will not only strengthen digital infrastructure but also contribute to upskilling initiatives and provide support for developers. This strategic move by Microsoft aligns with the global trend towards digital transformation and underscores Indonesia's growing importance in the tech world. As technology continues to reshape economies and societies, investments like these will play a crucial role in positioning Indonesia as a leader in the new era of digital innovation. Check out Microsoft's Financial Valuation Report for Free at https://lnkd.in/gVzsRQhV

Amazon's profit soared in the first quarter, more than tripling and surpassing Wall Street's expectations. The company's shares surged in extended trading following the announcement of better-than-expected revenue and earnings. Advertising revenue experienced robust growth, increasing by 24% in the quarter, outpacing both retail and cloud computing segments. Additionally, Amazon Web Services (AWS) reported results that exceeded estimates, further contributing to the company's strong performance. Overall, Amazon's impressive financial results underscore its continued dominance across various segments and highlight its ability to capitalize on the evolving digital landscape. Check Amazon's latest earnings report for FREE at https://lnkd.in/gQ87ucWz