Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
/
Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
AO World plc, together with its subsidiaries, engages in the online retailing of domestic appliances and ancillary services in the United Kingdom and Germany. It retails fridges and freezers, laundry products, and dishwashers, as well as smart tech, computing, AV, consumer electronics, gaming and smart home products, and TV and entertainment products through its e-commerce platforms. The company also engages in the production of content, including imagery, videos, how-to guides and lifestyle contents, and energy efficiency ratings; and operation of waste electrical and electronic equipment (WEEE) and plastics recycling facilities, as well as distribution centers. In addition, the company offers musicMagpie, a reverse supply chain platform that provides customers options to train in tech and to buy second-life products. Further, it provides logistics and transport services. The company sells its products through its website, marketplaces, and third-party websites. AO World plc was founded in 2000 and is headquartered in Bolton, the United Kingdom.
£0.96
+£0.02 (+1.69%)
EOD Jul 3, 2026
Operating margin is thin at 3.89%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 11.3%, still solid.
Even for strong businesses, today's 15x P/E means the stock needs to keep delivering. There's no margin of safety if growth disappoints.
15.3x earnings, 6.1x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
£1.27B
▲ +11.3% YoY
Net Income (TTM)
£36M
▲ +241.9% YoY
Op. Margin
3.89%
▲ +0.3pp YoY
ROIC
15.64%
▲ +5.9pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
£90M
▲ +82.7% YoY
Op. Cash Flow (TTM)
£95M
▲ +64.2% YoY
Net Debt
-£17M
Net Cash Position
Cash & Equiv.
£81M
3Y CAGR: +3.6%
3Y CAGR: +59.3%
Continue Research
At a P/E of 15.3 and a price-to-free-cash-flow of 6.1, AO World (AO.XLON) trades below a two-stage DCF intrinsic value of about £7.95 per share, so at £0.96 the stock looks undervalued (726.0% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, AO World scores 81/100 on Intrinsiqq's quality scorecard (a high-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about £7.95 per share for AO.XLON, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around £5.96. At today's £0.96, that puts the stock about 726.0% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
AO World scores 81 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a high-quality business on these measures. Recent fundamentals include a 3.9% operating margin and a 15.6% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
That depends on valuation and quality together, not either alone. AO.XLON currently trades below its estimated intrinsic value and scores 81/100 on quality (high-quality). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.