What is BOPO's DCF valuation?

Biopower Operations Corp (BOPO) DCF Valuation Analysis

Executive Summary

As of May 28, 2025, Biopower Operations Corp 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 -583587.6%.

Key Metrics Value
DCF Fair Value (5-year) $0.00
DCF Fair Value (10-year) $0.00
Potential Upside (5-year) -583072.2%
Potential Upside (10-year) -583587.6%
Discount Rate (WACC) 3.8% - 5.0%

Financial Performance & Projections

Revenue Trends

Revenue is projected to grow from $1 million in 11-2022 to $1 million by 11-2032, representing a compound annual growth rate of approximately 0.0%.

Fiscal Year Revenue (USD millions) Growth
11-2022 1 227%
11-2023 1 6%
11-2024 1 3%
11-2025 1 2%
11-2026 1 2%
11-2027 1 2%
11-2028 1 3%
11-2029 1 6%
11-2030 1 5%
11-2031 1 2%
11-2032 1 2%

Profitability Projections

Net profit margin is expected to improve from -139% in 11-2022 to -80% by 11-2032, driven by operational efficiency and economies of scale.

Fiscal Year Net Profit (USD millions) Profit Margin
11-2022 (1) -139%
11-2023 (1) -61%
11-2024 (1) -63%
11-2025 (1) -64%
11-2026 (1) -66%
11-2027 (1) -67%
11-2028 (1) -69%
11-2029 (1) -73%
11-2030 (1) -77%
11-2031 (1) -79%
11-2032 (1) -80%

DCF Model Components

1. Capital Expenditures (CapEx)

with a 5-year average of $0 million. Projected CapEx is expected to maintain at approximately 22% 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)
11-2023 0
11-2024 0
11-2025 0
11-2026 0
11-2027 0
11-2028 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 0
Days Inventory 0
Days Payables 0

4. Free Cash Flow Projections

Fiscal Year EBITDA Tax CapEx Change in NWC FCF
6M/2023 (0) (0) 0 (0) (0)
2024 (1) (0) 0 0 (1)
2025 (1) (0) 0 0 (0)
2026 (1) (0) 0 (0) (0)
2027 (1) (0) 0 0 (0)

DCF Valuation Parameters

Key Assumptions

  • Discount Rate (WACC): WACC / Discount Rate (selected: 3.8% - 5.0%)
  • Long-Term Growth Rate: Long-term Growth Rate (selected: 2.0% - 3.5%)
  • Terminal EV/EBITDA Multiple: 13.5x (based on peer average)

Valuation Summary

Valuation Method Fair Price (USD) Potential Upside
5-Year DCF (Growth) 0.00 -583072.2%
10-Year DCF (Growth) 0.00 -583587.6%
5-Year DCF (EBITDA) 0.00 NaN%
10-Year DCF (EBITDA) 0.00 NaN%

Enterprise Value Breakdown

  • 5-Year Model: $(25)M
  • 10-Year Model: $(25)M

Investment Conclusion

Is Biopower Operations Corp (BOPO) a buy or a sell? Biopower Operations Corp is definitely a sell. Based on our DCF analysis, Biopower Operations Corp (BOPO) appears to be overvalued with upside potential of -583587.6%. 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:

  • Expanding profit margins (from -139% to -80%)
  • Strong free cash flow generation

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