What is ACC.OL's DCF valuation?

Aker Carbon Capture AS (ACC.OL) DCF Valuation Analysis

Executive Summary

As of June 16, 2025, Aker Carbon Capture AS has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $0.19, this represents a potential upside of -1470.0%.

Key Metrics Value
DCF Fair Value (5-year) $0.00
DCF Fair Value (10-year) $0.00
Potential Upside (5-year) -393.5%
Potential Upside (10-year) -1470.0%
Discount Rate (WACC) 5.3% - 6.7%

Financial Performance & Projections

Revenue Trends

Revenue is projected to grow from $6 million in 12-2024 to $127 million by 12-2034, representing a compound annual growth rate of approximately 35.7%.

Fiscal Year Revenue (USD millions) Growth
12-2024 6 100%
12-2025 6 5%
12-2026 10 57%
12-2027 15 57%
12-2028 22 47%
12-2029 32 41%
12-2030 45 42%
12-2031 61 35%
12-2032 79 30%
12-2033 101 28%
12-2034 127 26%

Profitability Projections

Net profit margin is expected to improve from -237% in 12-2024 to 8% by 12-2034, driven by operational efficiency and economies of scale.

Fiscal Year Net Profit (USD millions) Profit Margin
12-2024 (14) -237%
12-2025 (1) -9%
12-2026 (1) -5%
12-2027 (0) -2%
12-2028 0 1%
12-2029 1 5%
12-2030 2 5%
12-2031 4 6%
12-2032 5 7%
12-2033 7 7%
12-2034 10 8%

DCF Model Components

1. Capital Expenditures (CapEx)

with a 5-year average of $67 million. Projected CapEx is expected to maintain at approximately 236% of revenue.

2. Depreciation & Amortization

Depreciation is based on an average useful life of 5 years for capital assets.

Fiscal Year D&A (USD millions)
12-2025 69
12-2026 71
12-2027 57
12-2028 39
12-2029 40
12-2030 59

3. Working Capital Requirements

Net working capital is expected to increase gradually, with projected changes affecting free cash flow.

Components Average Days
Days Receivables 23
Days Inventory 0
Days Payables 299

4. Free Cash Flow Projections

Fiscal Year EBITDA Tax CapEx Change in NWC FCF
9M/2025 18 (0) 11 7 0
2026 1 (0) 23 (4) (17)
2027 (52) (0) 36 (9) (79)
2028 (121) 0 53 (1) (173)
2029 (183) 0 75 (9) (250)

DCF Valuation Parameters

Key Assumptions

  • Discount Rate (WACC): WACC / Discount Rate (selected: 5.3% - 6.7%)
  • Long-Term Growth Rate: Long-term Growth Rate (selected: 3.0% - 5.0%)
  • Terminal EV/EBITDA Multiple: 6.0x (based on peer average)

Valuation Summary

Valuation Method Fair Price (USD) Potential Upside
5-Year DCF (Growth) 0.00 -393.5%
10-Year DCF (Growth) 0.00 -1470.0%
5-Year DCF (EBITDA) 0.10 -47.5%
10-Year DCF (EBITDA) 0.00 -100.0%

Enterprise Value Breakdown

  • 5-Year Model: $(7,055)M
  • 10-Year Model: $(26,049)M

Investment Conclusion

Is Aker Carbon Capture AS (ACC.OL) a buy or a sell? Aker Carbon Capture AS is definitely a sell. Based on our DCF analysis, Aker Carbon Capture AS (ACC.OL) appears to be overvalued with upside potential of -1470.0%. 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:

  • Expanding profit margins (from -237% to 8%)
  • Steady revenue growth (35.7% CAGR)
  • Strong free cash flow generation

Investors should consider reducing exposure at the current market price of $0.19.