Apollo Global Management, LLC Class A Common Shares Representing Class A Limitied Liability Company Interests (APO) Company Bio
Apollo Global Management provides its services to endowment and sovereign wealth funds, as well as other institutional and individual investors. The company was founded in 1990 and is based in New York.
APO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Apollo Global Management Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Apollo Global Management Inc ranked in the 64th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 125% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for APO, they are:
Apollo Global Management Inc's effective tax rate, as measured by taxes paid relative to net income, is at 41 -- greater than 93.22% of US stocks with positive free cash flow.
Apollo Global Management Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -5.76. This coverage rate is greater than that of just 10.69% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 13. This value is greater than 89.35% stocks in the Financial Services sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DFIN, CACC, PRI, SIGI, and TRV can be thought of as valuation peers to APO, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
Electric vehicle maker Fisker Inc. is going public, through a reverse merger with special purpose acquisition company (SPAC) Spartan Energy Acquisition Corp. , in a deal valued at about $2.9 billion. That sent the shares of Spartan Energy Acquisition, which is sponsored by Apollo Global Management Inc. , up 18.6% in morning trading toward a record high. The stock has now rocketed 85.0% amid a 4-day win streak. Fisker said the reverse merger will provide more than $1 billion in gross proceeds to the company, including $500 million fully committed common stock at $10 per share. Fisker said it plans to use the proceeds to fund the development of the Fisker Ocean, a fully electric SUV, through start of production in 2022.