What is FLTA.L's DCF valuation?

Filta Group Holdings PLC (FLTA.L) DCF Valuation Analysis

Executive Summary

As of December 15, 2025, Filta Group Holdings PLC has a Discounted Cash Flow (DCF) derived fair value of $295.28 per share. With the current market price at $170.00, this represents a potential upside of 73.7%.

Key Metrics Value
DCF Fair Value (5-year) $71.55
DCF Fair Value (10-year) $295.28
Potential Upside (5-year) -57.9%
Potential Upside (10-year) 73.7%
Discount Rate (WACC) 5.3% - 9.7%

Financial Performance & Projections

Revenue Trends

Revenue is projected to grow from $16 million in 12-2020 to $73 million by 12-2030, representing a compound annual growth rate of approximately 16.4%.

Fiscal Year Revenue (USD millions) Growth
12-2020 16 34%
12-2021 21 26%
12-2022 27 31%
12-2023 33 22%
12-2024 40 20%
12-2025 48 20%
12-2026 53 12%
12-2027 59 12%
12-2028 64 8%
12-2029 69 8%
12-2030 73 7%

Profitability Projections

Net profit margin is expected to improve from -6% in 12-2020 to 7% by 12-2030, driven by operational efficiency and economies of scale.

Fiscal Year Net Profit (USD millions) Profit Margin
12-2020 (1) -6%
12-2021 (0) -2%
12-2022 0 0%
12-2023 1 2%
12-2024 1 4%
12-2025 3 5%
12-2026 3 6%
12-2027 4 6%
12-2028 4 6%
12-2029 5 7%
12-2030 5 7%

DCF Model Components

1. Capital Expenditures (CapEx)

with a 5-year average of $0 million. Projected CapEx is expected to maintain at approximately 2% of revenue.

2. Depreciation & Amortization

Depreciation is based on an average useful life of 5 years for capital assets.

Fiscal Year D&A (USD millions)
12-2021 0
12-2022 0
12-2023 0
12-2024 1
12-2025 1
12-2026 1

3. Working Capital Requirements

Net working capital is expected to increase gradually, with projected changes affecting free cash flow.

Components Average Days
Days Receivables 74
Days Inventory 59
Days Payables 87

4. Free Cash Flow Projections

Fiscal Year EBITDA Tax CapEx Change in NWC FCF
6M/2021 0 (0) 0 0 (1)
2022 1 0 1 0 (0)
2023 2 0 1 1 (0)
2024 3 1 1 1 1
2025 5 1 1 1 2

DCF Valuation Parameters

Key Assumptions

  • Discount Rate (WACC): WACC / Discount Rate (selected: 5.3% - 9.7%)
  • Long-Term Growth Rate: Long-term Growth Rate (selected: 3.0% - 5.0%)
  • Terminal EV/EBITDA Multiple: 6.4x (based on peer average)

Valuation Summary

Valuation Method Fair Price (USD) Potential Upside
5-Year DCF (Growth) 71.55 -57.9%
10-Year DCF (Growth) 295.28 73.7%
5-Year DCF (EBITDA) 59.73 -64.9%
10-Year DCF (EBITDA) 145.32 -14.5%

Enterprise Value Breakdown

  • 5-Year Model: $21M
  • 10-Year Model: $86M

Investment Conclusion

Is Filta Group Holdings PLC (FLTA.L) a buy or a sell? Filta Group Holdings PLC is definitely a buy. Based on our DCF analysis, Filta Group Holdings PLC (FLTA.L) appears to be significantly undervalued with upside potential of 73.7%. 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:

  • Expanding profit margins (from -6% to 7%)
  • Steady revenue growth (16.4% CAGR)
  • Strong free cash flow generation

Investors should consider a strong buy at the current market price of $170.00.