As of May 23, 2025, Choom Holdings Inc has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $0.01, this represents a potential upside of -28651.4%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -42436.3% |
| Potential Upside (10-year) | -28651.4% |
| Discount Rate (WACC) | 6.2% - 8.7% |
Revenue is projected to grow from $22 million in 06-2023 to $26 million by 06-2033, representing a compound annual growth rate of approximately 1.7%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 06-2023 | 22 | 178% |
| 06-2024 | 17 | -25% |
| 06-2025 | 17 | 5% |
| 06-2026 | 18 | 6% |
| 06-2027 | 19 | 3% |
| 06-2028 | 20 | 5% |
| 06-2029 | 20 | 4% |
| 06-2030 | 22 | 6% |
| 06-2031 | 23 | 6% |
| 06-2032 | 24 | 6% |
| 06-2033 | 26 | 5% |
Net profit margin is expected to improve from -92% in 06-2023 to -74% by 06-2033, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 06-2023 | (20) | -92% |
| 06-2024 | (15) | -88% |
| 06-2025 | (15) | -85% |
| 06-2026 | (15) | -82% |
| 06-2027 | (15) | -79% |
| 06-2028 | (15) | -77% |
| 06-2029 | (16) | -76% |
| 06-2030 | (16) | -76% |
| 06-2031 | (17) | -75% |
| 06-2032 | (18) | -75% |
| 06-2033 | (19) | -74% |
with a 5-year average of $2 million. Projected CapEx is expected to maintain at approximately 588% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 06-2024 | 21 |
| 06-2025 | 42 |
| 06-2026 | 63 |
| 06-2027 | 84 |
| 06-2028 | 107 |
| 06-2029 | 111 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 42 |
| Days Inventory | 705 |
| Days Payables | 1,990 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2024 | 12 | (0) | 97 | (33) | (53) |
| 2025 | 32 | (0) | 102 | 22 | (92) |
| 2026 | 53 | (0) | 108 | (4) | (52) |
| 2027 | 74 | (0) | 111 | (4) | (32) |
| 2028 | 97 | (0) | 116 | 4 | (23) |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -42436.3% |
| 10-Year DCF (Growth) | 0.00 | -28651.4% |
| 5-Year DCF (EBITDA) | 1.02 | 10096.5% |
| 10-Year DCF (EBITDA) | 1.03 | 10154.1% |
Is Choom Holdings Inc (CHOO.CN) a buy or a sell? Choom Holdings Inc is definitely a sell. Based on our DCF analysis, Choom Holdings Inc (CHOO.CN) appears to be overvalued with upside potential of -28651.4%. 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 reducing exposure at the current market price of $0.01.