Investors underestimate RLX Technology Inc. (NYSE:RLX) 48% undervalued?

TLDR: RLX Technology Inc. (NYSE:RLX) may be undervalued by 48% based on estimated fair value and current share price. A discounted cash flow (DCF) model was used to calculate the intrinsic value of the company. The DCF model takes into account future cash flows and discounts them to their present value. RLX’s estimated fair value is $3.59, while the current share price is $1.87. However, valuations are imprecise and can vary based on different assumptions and factors. The DCF model does not consider industry cyclicality or future capital requirements, so it may not provide a full picture of the company’s potential performance. Analysts are forecasting faster annual earnings growth for RLX compared to the American market, and the stock is also trading below the estimated fair value by more than 20%. It’s important to conduct further research and analysis to fully understand the company’s potential risks and growth prospects.