As of May 23, 2025, Artemis Alpha Trust PLC has a Discounted Cash Flow (DCF) derived fair value of $667.51 per share. With the current market price at $369.00, this represents a potential upside of 80.9%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $622.01 |
| DCF Fair Value (10-year) | $667.51 |
| Potential Upside (5-year) | 68.6% |
| Potential Upside (10-year) | 80.9% |
| Discount Rate (WACC) | 9.3% - 11.0% |
Revenue is projected to grow from $20 million in 04-2024 to $27 million by 04-2034, representing a compound annual growth rate of approximately 3.0%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 04-2024 | 20 | 648% |
| 04-2025 | 21 | 5% |
| 04-2026 | 22 | 2% |
| 04-2027 | 22 | 2% |
| 04-2028 | 23 | 2% |
| 04-2029 | 23 | 2% |
| 04-2030 | 23 | 2% |
| 04-2031 | 24 | 3% |
| 04-2032 | 25 | 2% |
| 04-2033 | 25 | 2% |
| 04-2034 | 27 | 8% |
Net profit margin is expected to improve from 87% in 04-2024 to 87% by 04-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 04-2024 | 18 | 87% |
| 04-2025 | 18 | 87% |
| 04-2026 | 19 | 87% |
| 04-2027 | 19 | 87% |
| 04-2028 | 20 | 87% |
| 04-2029 | 20 | 87% |
| 04-2030 | 20 | 87% |
| 04-2031 | 21 | 87% |
| 04-2032 | 21 | 87% |
| 04-2033 | 22 | 87% |
| 04-2034 | 24 | 87% |
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) |
|---|---|
| 04-2025 | 0 |
| 04-2026 | 0 |
| 04-2027 | 0 |
| 04-2028 | 0 |
| 04-2029 | 0 |
| 04-2030 | 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 | 55 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2025 | 19 | 0 | 0 | (0) | 19 |
| 2026 | 19 | 0 | 0 | (0) | 19 |
| 2027 | 19 | 0 | 0 | 0 | 19 |
| 2028 | 20 | 0 | 0 | (0) | 20 |
| 2029 | 20 | 0 | 0 | 0 | 20 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 622.01 | 68.6% |
| 10-Year DCF (Growth) | 667.51 | 80.9% |
| 5-Year DCF (EBITDA) | 459.94 | 24.6% |
| 10-Year DCF (EBITDA) | 553.85 | 50.1% |
Is Artemis Alpha Trust PLC (ATS.L) a buy or a sell? Artemis Alpha Trust PLC is definitely a buy. Based on our DCF analysis, Artemis Alpha Trust PLC (ATS.L) appears to be significantly undervalued with upside potential of 80.9%. 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:
Investors should consider a strong buy at the current market price of $369.00.