As of May 31, 2025, IDE Group Holdings PLC has a Discounted Cash Flow (DCF) derived fair value of $474.88 per share. With the current market price at $67.50, this represents a potential upside of 603.5%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $438.66 |
| DCF Fair Value (10-year) | $474.88 |
| Potential Upside (5-year) | 549.9% |
| Potential Upside (10-year) | 603.5% |
| Discount Rate (WACC) | 6.0% - 7.8% |
Revenue is projected to grow from $14 million in 12-2022 to $18 million by 12-2032, representing a compound annual growth rate of approximately 2.5%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2022 | 14 | 0% |
| 12-2023 | 15 | 4% |
| 12-2024 | 15 | 2% |
| 12-2025 | 16 | 2% |
| 12-2026 | 16 | 2% |
| 12-2027 | 16 | 2% |
| 12-2028 | 17 | 2% |
| 12-2029 | 17 | 2% |
| 12-2030 | 18 | 4% |
| 12-2031 | 18 | 2% |
| 12-2032 | 18 | 2% |
Net profit margin is expected to improve from -3% in 12-2022 to -5% by 12-2032, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2022 | (0) | -3% |
| 12-2023 | (1) | -5% |
| 12-2024 | (1) | -5% |
| 12-2025 | (1) | -5% |
| 12-2026 | (1) | -5% |
| 12-2027 | (1) | -5% |
| 12-2028 | (1) | -5% |
| 12-2029 | (1) | -5% |
| 12-2030 | (1) | -5% |
| 12-2031 | (1) | -5% |
| 12-2032 | (1) | -5% |
. 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) |
|---|---|
| 12-2023 | 0 |
| 12-2024 | 0 |
| 12-2025 | 0 |
| 12-2026 | 0 |
| 12-2027 | 0 |
| 12-2028 | 0 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 101 |
| Days Inventory | 0 |
| Days Payables | 286 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2023 | 1 | (1) | 0 | (1) | 3 |
| 2024 | 1 | (1) | 0 | 0 | 1 |
| 2025 | 1 | (1) | 0 | 0 | 1 |
| 2026 | 1 | (1) | 0 | (0) | 2 |
| 2027 | 1 | (1) | 0 | 0 | 2 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 438.66 | 549.9% |
| 10-Year DCF (Growth) | 474.88 | 603.5% |
| 5-Year DCF (EBITDA) | 159.29 | 136.0% |
| 10-Year DCF (EBITDA) | 249.12 | 269.1% |
Is IDE Group Holdings PLC (IDE.L) a buy or a sell? IDE Group Holdings PLC is definitely a buy. Based on our DCF analysis, IDE Group Holdings PLC (IDE.L) appears to be significantly undervalued with upside potential of 603.5%. 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 $67.50.