As of April 4, 2026, Fidelity European Values PLC has a Discounted Cash Flow (DCF) derived fair value of $830.21 per share. With the current market price at $387.50, this represents a potential upside of 114.2%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $770.99 |
| DCF Fair Value (10-year) | $830.21 |
| Potential Upside (5-year) | 99.0% |
| Potential Upside (10-year) | 114.2% |
| Discount Rate (WACC) | 7.0% - 9.0% |
Revenue is projected to grow from $297 million in 12-2021 to $403 million by 12-2031, representing a compound annual growth rate of approximately 3.1%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2021 | 297 | 152% |
| 12-2022 | 311 | 5% |
| 12-2023 | 325 | 5% |
| 12-2024 | 332 | 2% |
| 12-2025 | 343 | 3% |
| 12-2026 | 350 | 2% |
| 12-2027 | 357 | 2% |
| 12-2028 | 368 | 3% |
| 12-2029 | 376 | 2% |
| 12-2030 | 383 | 2% |
| 12-2031 | 403 | 5% |
Net profit margin is expected to improve from 95% in 12-2021 to 95% by 12-2031, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2021 | 282 | 95% |
| 12-2022 | 295 | 95% |
| 12-2023 | 309 | 95% |
| 12-2024 | 316 | 95% |
| 12-2025 | 326 | 95% |
| 12-2026 | 333 | 95% |
| 12-2027 | 340 | 95% |
| 12-2028 | 350 | 95% |
| 12-2029 | 357 | 95% |
| 12-2030 | 364 | 95% |
| 12-2031 | 383 | 95% |
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) |
|---|---|
| 12-2022 | 0 |
| 12-2023 | 0 |
| 12-2024 | 0 |
| 12-2025 | 0 |
| 12-2026 | 0 |
| 12-2027 | 0 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 1 |
| Days Inventory | 0 |
| Days Payables | 0 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2022 | 300 | 4 | 0 | 0 | 296 |
| 2023 | 314 | 4 | 0 | 0 | 310 |
| 2024 | 320 | 4 | 0 | (0) | 317 |
| 2025 | 331 | 4 | 0 | 0 | 327 |
| 2026 | 338 | 4 | 0 | 0 | 333 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 770.99 | 99.0% |
| 10-Year DCF (Growth) | 830.21 | 114.2% |
| 5-Year DCF (EBITDA) | 486.29 | 25.5% |
| 10-Year DCF (EBITDA) | 610.59 | 57.6% |
Is Fidelity European Values PLC (FEV.L) a buy or a sell? Fidelity European Values PLC is definitely a buy. Based on our DCF analysis, Fidelity European Values PLC (FEV.L) appears to be significantly undervalued with upside potential of 114.2%. 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 $387.50.