As of June 13, 2025, Hays PLC has a Discounted Cash Flow (DCF) derived fair value of $549.54 per share. With the current market price at $72.60, this represents a potential upside of 656.9%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $426.81 |
| DCF Fair Value (10-year) | $549.54 |
| Potential Upside (5-year) | 487.9% |
| Potential Upside (10-year) | 656.9% |
| Discount Rate (WACC) | 6.3% - 8.4% |
Revenue is projected to grow from $6949 million in 06-2024 to $8752 million by 06-2034, representing a compound annual growth rate of approximately 2.3%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 06-2024 | 6949 | 8% |
| 06-2025 | 6308 | -9% |
| 06-2026 | 6609 | 5% |
| 06-2027 | 7137 | 8% |
| 06-2028 | 7596 | 6% |
| 06-2029 | 7748 | 2% |
| 06-2030 | 7903 | 2% |
| 06-2031 | 8076 | 2% |
| 06-2032 | 8412 | 4% |
| 06-2033 | 8580 | 2% |
| 06-2034 | 8752 | 2% |
Net profit margin is expected to improve from 0% in 06-2024 to 6% by 06-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 06-2024 | (5) | 0% |
| 06-2025 | 83 | 1% |
| 06-2026 | 163 | 2% |
| 06-2027 | 257 | 4% |
| 06-2028 | 357 | 5% |
| 06-2029 | 448 | 6% |
| 06-2030 | 457 | 6% |
| 06-2031 | 467 | 6% |
| 06-2032 | 486 | 6% |
| 06-2033 | 496 | 6% |
| 06-2034 | 506 | 6% |
with a 5-year average of $24 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) |
|---|---|
| 06-2025 | 24 |
| 06-2026 | 25 |
| 06-2027 | 25 |
| 06-2028 | 25 |
| 06-2029 | 26 |
| 06-2030 | 28 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 61 |
| Days Inventory | 0 |
| Days Payables | 18 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 6M/2025 | 76 | 18 | 12 | (19) | 65 |
| 2026 | 267 | 71 | 25 | 25 | 147 |
| 2027 | 402 | 111 | 27 | 72 | 193 |
| 2028 | 546 | 154 | 28 | 69 | 294 |
| 2029 | 678 | 194 | 29 | 21 | 435 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 426.81 | 487.9% |
| 10-Year DCF (Growth) | 549.54 | 656.9% |
| 5-Year DCF (EBITDA) | 141.33 | 94.7% |
| 10-Year DCF (EBITDA) | 227.87 | 213.9% |
Is Hays PLC (HAS.L) a buy or a sell? Hays PLC is definitely a buy. Based on our DCF analysis, Hays PLC (HAS.L) appears to be significantly undervalued with upside potential of 656.9%. 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 $72.60.