As of May 28, 2025, Becker Milk Co Ltd has a Discounted Cash Flow (DCF) derived fair value of $15.42 per share. With the current market price at $13.00, this represents a potential upside of 18.6%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $14.33 |
| DCF Fair Value (10-year) | $15.42 |
| Potential Upside (5-year) | 10.2% |
| Potential Upside (10-year) | 18.6% |
| Discount Rate (WACC) | 5.0% - 6.0% |
Revenue is projected to grow from $3 million in 04-2024 to $4 million by 04-2034, representing a compound annual growth rate of approximately 2.9%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 04-2024 | 3 | 6% |
| 04-2025 | 3 | -2% |
| 04-2026 | 3 | 2% |
| 04-2027 | 3 | 5% |
| 04-2028 | 3 | 2% |
| 04-2029 | 3 | 2% |
| 04-2030 | 3 | 2% |
| 04-2031 | 3 | 2% |
| 04-2032 | 4 | 3% |
| 04-2033 | 4 | 2% |
| 04-2034 | 4 | 2% |
Net profit margin is expected to improve from 4% in 04-2024 to 8% by 04-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 04-2024 | 0 | 4% |
| 04-2025 | 0 | 8% |
| 04-2026 | 0 | 8% |
| 04-2027 | 0 | 8% |
| 04-2028 | 0 | 8% |
| 04-2029 | 0 | 8% |
| 04-2030 | 0 | 8% |
| 04-2031 | 0 | 8% |
| 04-2032 | 0 | 8% |
| 04-2033 | 0 | 8% |
| 04-2034 | 0 | 8% |
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 | 96 |
| Days Inventory | 0 |
| Days Payables | 0 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 3M/2025 | 0 | 0 | 0 | 0 | 0 |
| 2026 | 1 | 0 | 0 | (0) | 1 |
| 2027 | 1 | 0 | 0 | (0) | 1 |
| 2028 | 1 | 0 | 0 | 0 | 1 |
| 2029 | 1 | 0 | 0 | (0) | 1 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 14.33 | 10.2% |
| 10-Year DCF (Growth) | 15.42 | 18.6% |
| 5-Year DCF (EBITDA) | 14.74 | 13.4% |
| 10-Year DCF (EBITDA) | 15.74 | 21.1% |
Is Becker Milk Co Ltd (BEK.B.TO) a buy or a sell? Becker Milk Co Ltd is definitely a buy. Based on our DCF analysis, Becker Milk Co Ltd (BEK.B.TO) appears to be moderately undervalued with upside potential of 18.6%. 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 a buy at the current market price of $13.00.