As of May 29, 2025, Aberdeen Emerging Markets Equity Income Fund Inc has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $5.47, this represents a potential upside of -137.8%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -140.0% |
| Potential Upside (10-year) | -137.8% |
| Discount Rate (WACC) | 9.5% - 12.0% |
Revenue is projected to grow from $10 million in 12-2023 to $13 million by 12-2033, representing a compound annual growth rate of approximately 2.7%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2023 | 10 | 15% |
| 12-2024 | 10 | 5% |
| 12-2025 | 11 | 2% |
| 12-2026 | 11 | 2% |
| 12-2027 | 11 | 2% |
| 12-2028 | 11 | 2% |
| 12-2029 | 12 | 2% |
| 12-2030 | 12 | 2% |
| 12-2031 | 12 | 2% |
| 12-2032 | 13 | 4% |
| 12-2033 | 13 | 2% |
Net profit margin is expected to improve from 294% in 12-2023 to 226% by 12-2033, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2023 | 29 | 294% |
| 12-2024 | 23 | 216% |
| 12-2025 | 23 | 219% |
| 12-2026 | 24 | 220% |
| 12-2027 | 25 | 222% |
| 12-2028 | 25 | 224% |
| 12-2029 | 26 | 224% |
| 12-2030 | 27 | 225% |
| 12-2031 | 27 | 225% |
| 12-2032 | 28 | 225% |
| 12-2033 | 29 | 226% |
with a 5-year average of $0 million. Projected CapEx is expected to maintain at approximately 0% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2024 | 0 |
| 12-2025 | 0 |
| 12-2026 | 0 |
| 12-2027 | 0 |
| 12-2028 | 0 |
| 12-2029 | 0 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 0 |
| Days Inventory | 0 |
| Days Payables | 54 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2024 | 4 | 8 | 0 | (0) | (4) |
| 2025 | 4 | 9 | 0 | 0 | (4) |
| 2026 | 5 | 9 | 0 | (0) | (4) |
| 2027 | 5 | 9 | 0 | (0) | (4) |
| 2028 | 5 | 9 | 0 | 0 | (4) |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -140.0% |
| 10-Year DCF (Growth) | 0.00 | -137.8% |
| 5-Year DCF (EBITDA) | 0.60 | -89.1% |
| 10-Year DCF (EBITDA) | 0.00 | -100.0% |
Is Aberdeen Emerging Markets Equity Income Fund Inc (AEF) a buy or a sell? Aberdeen Emerging Markets Equity Income Fund Inc is definitely a sell. Based on our DCF analysis, Aberdeen Emerging Markets Equity Income Fund Inc (AEF) appears to be overvalued with upside potential of -137.8%. 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 $5.47.