What is APTY's DCF valuation?

APT Systems Inc (APTY) DCF Valuation Analysis

Executive Summary

As of October 30, 2025, APT Systems Inc has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $0.00, this represents a potential upside of -7145.9%.

Key Metrics Value
DCF Fair Value (5-year) $0.00
DCF Fair Value (10-year) $0.00
Potential Upside (5-year) -6890.9%
Potential Upside (10-year) -7145.9%
Discount Rate (WACC) 4.6% - 5.7%

Financial Performance & Projections

Revenue Trends

Fiscal Year Revenue (USD millions) Growth
01-2018 0 40%
01-2019 0 7%
01-2020 0 3%
01-2021 0 4%
01-2022 0 7%
01-2023 0 6%
01-2024 0 6%
01-2025 0 4%
01-2026 0 3%
01-2027 0 2%
01-2028 0 5%

Profitability Projections

Net profit margin is expected to improve from -5029400% in 01-2018 to -175% by 01-2028, driven by operational efficiency and economies of scale.

Fiscal Year Net Profit (USD millions) Profit Margin
01-2018 (2) -5029400%
01-2019 (1) -118%
01-2020 (1) -121%
01-2021 (1) -126%
01-2022 (1) -135%
01-2023 (1) -143%
01-2024 (2) -152%
01-2025 (2) -158%
01-2026 (2) -162%
01-2027 (2) -166%
01-2028 (2) -175%

DCF Model Components

1. Capital Expenditures (CapEx)

with a 5-year average of $0 million. Projected CapEx is expected to maintain at approximately 0% 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)
01-2019 0
01-2020 0
01-2021 0
01-2022 0
01-2023 0
01-2024 0

3. Working Capital Requirements

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

Components Average Days
Days Receivables 7
Days Inventory 0
Days Payables 0

4. Free Cash Flow Projections

Fiscal Year EBITDA Tax CapEx Change in NWC FCF
3M/2019 (0) (0) 0 0 (0)
2020 (1) (0) 0 (0) (1)
2021 (2) (0) 0 0 (1)
2022 (2) (0) 0 0 (1)
2023 (2) (1) 0 (0) (1)

DCF Valuation Parameters

Key Assumptions

  • Discount Rate (WACC): WACC / Discount Rate (selected: 4.6% - 5.7%)
  • Long-Term Growth Rate: Long-term Growth Rate (selected: 3.0% - 4.4%)
  • Terminal EV/EBITDA Multiple: (based on peer average)

Valuation Summary

Valuation Method Fair Price (USD) Potential Upside
5-Year DCF (Growth) 0.00 -6890.9%
10-Year DCF (Growth) 0.00 -7145.9%
5-Year DCF (EBITDA) 0.00 NaN%
10-Year DCF (EBITDA) 0.00 NaN%

Enterprise Value Breakdown

  • 5-Year Model: $(68)M
  • 10-Year Model: $(71)M

Investment Conclusion

Is APT Systems Inc (APTY) a buy or a sell? APT Systems Inc is definitely a sell. Based on our DCF analysis, APT Systems Inc (APTY) appears to be overvalued with upside potential of -7145.9%. 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 -5029400% to -175%)
  • Strong free cash flow generation

Investors should consider reducing exposure at the current market price of $0.00.