As of June 12, 2025, Canaf Investments Inc has a Discounted Cash Flow (DCF) derived fair value of $0.82 per share. With the current market price at $0.35, this represents a potential upside of 135.4%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.73 |
| DCF Fair Value (10-year) | $0.82 |
| Potential Upside (5-year) | 107.6% |
| Potential Upside (10-year) | 135.4% |
| Discount Rate (WACC) | 8.2% - 11.3% |
Revenue is projected to grow from $33 million in 10-2024 to $44 million by 10-2034, representing a compound annual growth rate of approximately 2.9%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 10-2024 | 33 | 1% |
| 10-2025 | 28 | -13% |
| 10-2026 | 30 | 6% |
| 10-2027 | 31 | 3% |
| 10-2028 | 34 | 9% |
| 10-2029 | 36 | 7% |
| 10-2030 | 38 | 6% |
| 10-2031 | 40 | 4% |
| 10-2032 | 41 | 4% |
| 10-2033 | 42 | 2% |
| 10-2034 | 44 | 4% |
Net profit margin is expected to improve from 8% in 10-2024 to 8% by 10-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 10-2024 | 2 | 8% |
| 10-2025 | 2 | 8% |
| 10-2026 | 2 | 8% |
| 10-2027 | 2 | 8% |
| 10-2028 | 3 | 8% |
| 10-2029 | 3 | 8% |
| 10-2030 | 3 | 8% |
| 10-2031 | 3 | 8% |
| 10-2032 | 3 | 8% |
| 10-2033 | 3 | 8% |
| 10-2034 | 3 | 8% |
with a 5-year average of $0 million. Projected CapEx is expected to maintain at approximately 1% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 10-2025 | 0 |
| 10-2026 | 0 |
| 10-2027 | 0 |
| 10-2028 | 0 |
| 10-2029 | 0 |
| 10-2030 | 0 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 42 |
| Days Inventory | 20 |
| Days Payables | 39 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 9M/2025 | 2 | 1 | 0 | 0 | 1 |
| 2026 | 3 | 1 | 0 | 0 | 1 |
| 2027 | 3 | 1 | 0 | (0) | 2 |
| 2028 | 3 | 1 | 0 | 0 | 1 |
| 2029 | 3 | 1 | 0 | 0 | 2 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.73 | 107.6% |
| 10-Year DCF (Growth) | 0.82 | 135.4% |
| 5-Year DCF (EBITDA) | 0.71 | 101.9% |
| 10-Year DCF (EBITDA) | 0.80 | 127.4% |
Is Canaf Investments Inc (CAF.V) a buy or a sell? Canaf Investments Inc is definitely a buy. Based on our DCF analysis, Canaf Investments Inc (CAF.V) appears to be significantly undervalued with upside potential of 135.4%. 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 $0.35.