As of May 22, 2025, 7digital Group plc has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $0.69, this represents a potential upside of -654.2%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -694.4% |
| Potential Upside (10-year) | -654.2% |
| Discount Rate (WACC) | 6.2% - 8.4% |
Revenue is projected to grow from $7 million in 12-2021 to $10 million by 12-2031, representing a compound annual growth rate of approximately 3.6%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2021 | 7 | 3% |
| 12-2022 | 7 | 5% |
| 12-2023 | 7 | 2% |
| 12-2024 | 7 | 2% |
| 12-2025 | 8 | 5% |
| 12-2026 | 8 | 5% |
| 12-2027 | 8 | 4% |
| 12-2028 | 9 | 2% |
| 12-2029 | 9 | 2% |
| 12-2030 | 9 | 5% |
| 12-2031 | 10 | 5% |
Net profit margin is expected to improve from -58% in 12-2021 to -48% by 12-2031, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2021 | (4) | -58% |
| 12-2022 | (4) | -55% |
| 12-2023 | (4) | -54% |
| 12-2024 | (4) | -52% |
| 12-2025 | (4) | -51% |
| 12-2026 | (4) | -49% |
| 12-2027 | (4) | -49% |
| 12-2028 | (4) | -49% |
| 12-2029 | (4) | -48% |
| 12-2030 | (5) | -48% |
| 12-2031 | (5) | -48% |
with a 5-year average of $1 million. Projected CapEx is expected to maintain at approximately 9% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2022 | 1 |
| 12-2023 | 0 |
| 12-2024 | 1 |
| 12-2025 | 1 |
| 12-2026 | 1 |
| 12-2027 | 1 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 46 |
| Days Inventory | 0 |
| Days Payables | 376 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 6M/2022 | (2) | (0) | 0 | (0) | (2) |
| 2023 | (3) | (0) | 1 | 0 | (4) |
| 2024 | (3) | (0) | 1 | 0 | (4) |
| 2025 | (3) | (0) | 1 | (0) | (4) |
| 2026 | (3) | (0) | 1 | 0 | (4) |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -694.4% |
| 10-Year DCF (Growth) | 0.00 | -654.2% |
| 5-Year DCF (EBITDA) | 0.00 | -100.0% |
| 10-Year DCF (EBITDA) | 0.00 | -100.0% |
Is 7digital Group plc (7DIG.L) a buy or a sell? 7digital Group plc is definitely a sell. Based on our DCF analysis, 7digital Group plc (7DIG.L) appears to be overvalued with upside potential of -654.2%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider reducing exposure at the current market price of $0.69.