As of May 24, 2025, Enterprise Group Inc has a Discounted Cash Flow (DCF) derived fair value of $4.58 per share. With the current market price at $1.62, this represents a potential upside of 182.4%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $2.72 |
| DCF Fair Value (10-year) | $4.58 |
| Potential Upside (5-year) | 68.0% |
| Potential Upside (10-year) | 182.4% |
| Discount Rate (WACC) | 5.4% - 7.8% |
Revenue is projected to grow from $35 million in 12-2024 to $147 million by 12-2034, representing a compound annual growth rate of approximately 15.4%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 35 | 3% |
| 12-2025 | 50 | 44% |
| 12-2026 | 62 | 24% |
| 12-2027 | 75 | 21% |
| 12-2028 | 87 | 16% |
| 12-2029 | 98 | 12% |
| 12-2030 | 107 | 10% |
| 12-2031 | 118 | 10% |
| 12-2032 | 128 | 8% |
| 12-2033 | 138 | 8% |
| 12-2034 | 147 | 7% |
Net profit margin is expected to improve from 13% in 12-2024 to 13% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | 5 | 13% |
| 12-2025 | 7 | 13% |
| 12-2026 | 8 | 13% |
| 12-2027 | 10 | 13% |
| 12-2028 | 12 | 13% |
| 12-2029 | 13 | 13% |
| 12-2030 | 14 | 13% |
| 12-2031 | 16 | 13% |
| 12-2032 | 17 | 13% |
| 12-2033 | 18 | 13% |
| 12-2034 | 20 | 13% |
with a 5-year average of $9 million. Projected CapEx is expected to maintain at approximately 29% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 11 |
| 12-2026 | 14 |
| 12-2027 | 17 |
| 12-2028 | 19 |
| 12-2029 | 21 |
| 12-2030 | 25 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 87 |
| Days Inventory | 7 |
| Days Payables | 49 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2025 | 22 | 0 | 14 | 4 | 3 |
| 2026 | 27 | 0 | 18 | 1 | 8 |
| 2027 | 33 | 0 | 22 | 2 | 9 |
| 2028 | 38 | 0 | 25 | 3 | 10 |
| 2029 | 42 | 0 | 28 | 1 | 13 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 2.72 | 68.0% |
| 10-Year DCF (Growth) | 4.58 | 182.4% |
| 5-Year DCF (EBITDA) | 6.17 | 281.1% |
| 10-Year DCF (EBITDA) | 8.19 | 405.7% |
Is Enterprise Group Inc (E.TO) a buy or a sell? Enterprise Group Inc is definitely a buy. Based on our DCF analysis, Enterprise Group Inc (E.TO) appears to be significantly undervalued with upside potential of 182.4%. 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 $1.62.