As of May 24, 2025, Avon Rubber PLC 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 26.6%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -18.0% |
| Potential Upside (10-year) | 26.6% |
| Discount Rate (WACC) | 8.5% - 10.6% |
Revenue is projected to grow from $275 million in 09-2024 to $588 million by 09-2034, representing a compound annual growth rate of approximately 7.9%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 09-2024 | 275 | 13% |
| 09-2025 | 296 | 8% |
| 09-2026 | 317 | 7% |
| 09-2027 | 339 | 7% |
| 09-2028 | 371 | 10% |
| 09-2029 | 395 | 6% |
| 09-2030 | 433 | 10% |
| 09-2031 | 467 | 8% |
| 09-2032 | 506 | 8% |
| 09-2033 | 550 | 9% |
| 09-2034 | 588 | 7% |
Net profit margin is expected to improve from 1% in 09-2024 to 12% by 09-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 09-2024 | 3 | 1% |
| 09-2025 | 8 | 3% |
| 09-2026 | 15 | 5% |
| 09-2027 | 23 | 7% |
| 09-2028 | 31 | 8% |
| 09-2029 | 40 | 10% |
| 09-2030 | 46 | 11% |
| 09-2031 | 51 | 11% |
| 09-2032 | 57 | 11% |
| 09-2033 | 63 | 12% |
| 09-2034 | 70 | 12% |
with a 5-year average of $17 million. Projected CapEx is expected to maintain at approximately 7% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 09-2025 | 17 |
| 09-2026 | 15 |
| 09-2027 | 17 |
| 09-2028 | 20 |
| 09-2029 | 23 |
| 09-2030 | 25 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 39 |
| Days Inventory | 127 |
| Days Payables | 39 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2025 | 36 | 4 | 20 | 34 | (22) |
| 2026 | 44 | 7 | 21 | 3 | 13 |
| 2027 | 58 | 10 | 23 | (10) | 35 |
| 2028 | 75 | 14 | 25 | 13 | 23 |
| 2029 | 91 | 18 | 27 | 1 | 46 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -18.0% |
| 10-Year DCF (Growth) | 0.00 | 26.6% |
| 5-Year DCF (EBITDA) | 1864.56 | +Inf% |
| 10-Year DCF (EBITDA) | 2651.82 | +Inf% |
Is Avon Rubber PLC (AVON.L) a buy or a sell? Avon Rubber PLC is definitely a buy. Based on our DCF analysis, Avon Rubber PLC (AVON.L) appears to be overvalued with upside potential of 26.6%. 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 $0.00.