As of May 23, 2025, Edinburgh Investment Trust PLC has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $800.00, this represents a potential upside of 39.6%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | 29.5% |
| Potential Upside (10-year) | 39.6% |
| Discount Rate (WACC) | 9.9% - 13.0% |
Revenue is projected to grow from $141 million in 03-2024 to $198 million by 03-2034, representing a compound annual growth rate of approximately 3.5%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 03-2024 | 141 | 157% |
| 03-2025 | 152 | 8% |
| 03-2026 | 155 | 2% |
| 03-2027 | 158 | 2% |
| 03-2028 | 162 | 2% |
| 03-2029 | 165 | 2% |
| 03-2030 | 178 | 8% |
| 03-2031 | 185 | 4% |
| 03-2032 | 190 | 3% |
| 03-2033 | 194 | 2% |
| 03-2034 | 198 | 2% |
Net profit margin is expected to improve from 93% in 03-2024 to 93% by 03-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 03-2024 | 132 | 93% |
| 03-2025 | 142 | 93% |
| 03-2026 | 145 | 93% |
| 03-2027 | 147 | 93% |
| 03-2028 | 150 | 93% |
| 03-2029 | 153 | 93% |
| 03-2030 | 165 | 93% |
| 03-2031 | 172 | 93% |
| 03-2032 | 177 | 93% |
| 03-2033 | 181 | 93% |
| 03-2034 | 184 | 93% |
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) |
|---|---|
| 03-2025 | 0 |
| 03-2026 | 0 |
| 03-2027 | 0 |
| 03-2028 | 0 |
| 03-2029 | 0 |
| 03-2030 | 0 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 9 |
| Days Inventory | 0 |
| Days Payables | 137 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 6M/2025 | 71 | 0 | 0 | (2) | 72 |
| 2026 | 145 | 1 | 0 | 0 | 144 |
| 2027 | 148 | 1 | 0 | 1 | 147 |
| 2028 | 151 | 1 | 0 | (1) | 151 |
| 2029 | 154 | 1 | 0 | 0 | 153 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | 29.5% |
| 10-Year DCF (Growth) | 0.00 | 39.6% |
| 5-Year DCF (EBITDA) | 612.70 | -23.4% |
| 10-Year DCF (EBITDA) | 821.18 | 2.6% |
Is Edinburgh Investment Trust PLC (EDIN.L) a buy or a sell? Edinburgh Investment Trust PLC is definitely a buy. Based on our DCF analysis, Edinburgh Investment Trust PLC (EDIN.L) appears to be overvalued with upside potential of 39.6%. 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 reducing exposure at the current market price of $800.00.