Ao World (AO) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Ao World £1.41, price £0.93, upside +51.6%, quality 69 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 23, 2026.
How to read this chart
60‑month range £0.3722 – £2.39 · fair‑value band £1.06 – £1.77 · the £0.9300 price screens below the £1.41 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 23, 2026.
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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, and TV and entertainment products through its e-commerce platforms.
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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, 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.
Stock analysis
Ao World (AO) currently trades at £0.9300, while our model-based Fair Value estimate is £1.41, implying the stock looks roughly 34.0% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of £2.09 per share, and 18 of the 24 models we run sit above the £0.9300 price.
Bear case: the Asset-Based group reads lowest at £0.2100, and 6 of the 24 models stay below the price. Evidence for this calculation is high.
Scenario range: £1.06 (bear) to £1.77 (bull), the price of £0.9300 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 69/100 (solid quality), in the Consumer Cyclical sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Ao World reported revenue of £1.3B in FY2026 versus £1.6B in FY2022, a compound −5.0%/yr. Reported net income was £35.9M in FY2026.
Key figures
Market cap 546M GBX · P/E ratio 15.5 · P/S ratio 0.44 · EPS (TTM) £0.0600 · Net margin 2.8% · Return on equity 22.4% · Return on assets (EBIT) 4.0% · Operating margin 4.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 47 out of 100 (low confidence).
What moves the price
The share trades about 16% below its 52-week high and 13% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −1% fair-value upside, at 52%, AO screens cheaper than that median.
Fair Value models
Bear £1.06Fair Value £1.41Bull £1.77
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then (£0.0291 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+11.3%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.6%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−5.3%
Start year 2021 (pandemic). Over 10 years: +7.8% a year
Revenue growth 15 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.6%
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What shareholders gained per year (last 5 years) (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip.
+7.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year+7.3%
Dividend (yield on the price)0.0%
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.2% → 4%
2026 sits 107% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−10.6%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+5.3%
Yearly sales growth analysts expect, extended to five years.
After inflation (UK: IMF forecast 2.3% a year to 2030, 3.3% from 2016 to 2025) that is about −12.6% a year for the price and +2.9% for the forecasts.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Specialty Retail · 230 stocks
Beats the industry median on 9/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score69 · Top 25%
Fair Value upside+52% · Above median
Profitability
Return on equity (TTM)22% · Top 25%
Return on assets7% · Top 25%
Net margin (TTM)3% · Above median
Operating margin (TTM)5% · Above median
Growth and dividend
Revenue growth9% · Above median
Dividend yield (TTM)0.0% · Bottom 25%
Balance sheet
Debt / equity0.01× · Below median
Valuation Multiplesvs Specialty Retail median · lower = cheaper
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Cite: Fair Value Calculator (2026). "Ao World Fair Value". https://www.fairvalue-calculator.com/stock/AO
Frequently asked questions
Is Ao World (AO) overvalued or undervalued?
As of Sep 23, 2026, our model estimates a fair value of £1.41 versus a price of £0.9300, about +52% upside (undervalued).
What is the fair value of AO?
Our model-based fair value for Ao World is £1.41 (as of Sep 23, 2026), built from audited fundamentals. The current price: £0.9300.
What is the quality score of AO?
Ao World has a Quality Score of 69/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Ao World (AO)?
Our model-based price target is the fair value of £1.41 (as of Sep 23, 2026) from 24 valuation models. Cautious scenario £1.06, optimistic scenario £1.77. It is a calculation from audited fundamentals, not an analyst target.
What is the Ao World stock forecast for 2026?
Our models put fair value at £1.41, about +52% upside versus a price of £0.9300 (undervalued). Cautious scenario £1.06, optimistic scenario £1.77. The calculation is refreshed regularly with new filings.
What is the revenue of Ao World (AO)?
Ao World reported trailing-twelve-month revenue of about £1.3B (latest available figure, as of Sep 23, 2026).
What growth is priced into Ao World (AO)?
For today's price to be fair in a discounted-cash-flow model, Ao World would have to grow free cash flow by -10.6 % per year for five years (discount rate 12.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew -5.3 % per year. As of Sep 23, 2026.
What discount rate (WACC) does the fair value of AO use?
Our models discount Ao World at 12.4 %: a base by market capitalisation (small), damped by beta 1.22, country premium for United Kingdom. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Ao World that is -10.6 % per year a year over ten years, using the same discount rate (12.4 %) and the same formula as our fair value.
How much growth has Ao World (AO) delivered so far?
Over the past 5 years revenue at Ao World grew -5.3 % a year. The price currently implies -10.6 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Ao World (AO) growing?
The median revenue growth in the sector is +2.6 % a year. That is the yardstick for the growth priced into Ao World (-10.6 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Ao World (AO)?
The free-cash-flow yield on the price is 16.72 %: that much free cash flow Ao World produces per unit of market value. When it exceeds the discount rate of our models (12.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Ao World (AO)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Ao World it is £1.41 per share (as of Sep 23, 2026), against a price of £0.9300. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Ao World stock overvalued or undervalued in 2026?
As of Sep 23, 2026, AO trades below its calculated fair value: price £0.9300, fair value £1.41, a gap of about +52% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of AO?
No. The price is what the market pays today (£0.9300); the fair value is what the company's own numbers justify (£1.41). For Ao World the two are £0.4800 per share apart. That gap is exactly why we show both numbers side by side.
How much is Ao World worth?
The market values Ao World at about 546M GBX (market capitalisation, as of Sep 23, 2026). Per share that is £0.9300; our models calculate a fair value of £1.41 per share.
What do the bullish and bearish scenarios say about AO?
Our models span a range for Ao World: cautious scenario £1.06, base £1.41, optimistic £1.77 per share (as of Sep 23, 2026, price £0.9300). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of AO?
Ao World trades at a price-to-earnings ratio of 15.5 (as of Sep 23, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of £1.41 is built from several models across several years. Other multiples: P/B 4.1, P/S 0.6, EV/EBITDA 10.6.
How solid is the balance sheet of Ao World (AO)?
Balance-sheet figures for Ao World (as of Sep 23, 2026): return on equity 22.4%, debt of 0.01 per unit of equity. They feed the Quality Score of 69/100, which measures business quality independently of the share price.
How far is AO from its 52-week high?
Ao World trades at £0.9300, about 16% below its 52-week high of £1.11 and 13% above the low of £0.8235 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of £1.41 is for.
Which stocks are comparable to Ao World?
From the same area (Consumer Cyclical) we also value Alimentation Couche-Tard Inc, Casey's General Stores, Inc, Williams-Sonoma, Inc, Ulta Beauty, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Ao World stock attractive at the current price?
The data as of Sep 23, 2026: price £0.9300, calculated fair value £1.41 (+52%), Quality Score 69/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of AO calculated?
We run Ao World through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of £1.41, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.1 % above its aggregate fair value. Ao World currently trades 52 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Ao World (AO)?
The closing price on Sep 23, 2026 was £0.9300. Our model-based fair value is £1.41, about +52% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Ao World right now?
The price is below even our cautious bear case (£1.06). The market is more pessimistic than our downside scenario. Solid quality (69/100) at a price below fair value, the discount is the argument here, not the business quality.
Key figures of Ao World
How large is the market capitalisation of Ao World (AO)?
The market capitalisation of Ao World is 546M GBX. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Ao World (AO)?
The price-to-sales ratio of Ao World is 0.44 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Ao World (AO)?
Earnings per share at Ao World are £0.0600 (price ÷ EPS = P/E 15.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Ao World (AO)?
The net margin of Ao World is 2.8% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Ao World (AO)?
The return on equity (ROE) of Ao World is 22.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Ao World (AO)?
On an EBIT basis the return on assets of Ao World is 4.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Ao World (AO)?
The operating margin of Ao World is 4.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Ao World (AO)?
Revenue at Ao World is growing +8.9% versus a year earlier (3y avg +3.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Ao World (AO)?
Earnings per share at Ao World are growing +13.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Ao World (AO) hold?
Ao World holds more cash than debt, 16.5M GBX net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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