As of May 22, 2025, Image Scan Holdings PLC has a Discounted Cash Flow (DCF) derived fair value of $3.80 per share. With the current market price at $1.45, this represents a potential upside of 162.1%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $2.42 |
| DCF Fair Value (10-year) | $3.80 |
| Potential Upside (5-year) | 66.9% |
| Potential Upside (10-year) | 162.1% |
| Discount Rate (WACC) | 5.8% - 7.8% |
Revenue is projected to grow from $3 million in 09-2024 to $8 million by 09-2034, representing a compound annual growth rate of approximately 10.3%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 09-2024 | 3 | 3% |
| 09-2025 | 4 | 27% |
| 09-2026 | 4 | 16% |
| 09-2027 | 5 | 8% |
| 09-2028 | 5 | 10% |
| 09-2029 | 5 | 10% |
| 09-2030 | 6 | 7% |
| 09-2031 | 6 | 7% |
| 09-2032 | 7 | 7% |
| 09-2033 | 7 | 8% |
| 09-2034 | 8 | 7% |
Net profit margin is expected to improve from 7% in 09-2024 to 6% by 09-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 09-2024 | 0 | 7% |
| 09-2025 | 0 | 6% |
| 09-2026 | 0 | 6% |
| 09-2027 | 0 | 6% |
| 09-2028 | 0 | 6% |
| 09-2029 | 0 | 6% |
| 09-2030 | 0 | 6% |
| 09-2031 | 0 | 6% |
| 09-2032 | 0 | 6% |
| 09-2033 | 0 | 6% |
| 09-2034 | 0 | 6% |
with a 5-year average of $0 million. Projected CapEx is expected to maintain at approximately 4% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 09-2025 | 0 |
| 09-2026 | 0 |
| 09-2027 | 0 |
| 09-2028 | 0 |
| 09-2029 | 0 |
| 09-2030 | 0 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 72 |
| Days Inventory | 146 |
| Days Payables | 90 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2025 | 0 | 0 | 0 | 0 | (0) |
| 2026 | 0 | 0 | 0 | 0 | 0 |
| 2027 | 0 | 0 | 0 | 0 | 0 |
| 2028 | 1 | 0 | 0 | 0 | 0 |
| 2029 | 1 | 0 | 0 | 0 | 0 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 2.42 | 66.9% |
| 10-Year DCF (Growth) | 3.80 | 162.1% |
| 5-Year DCF (EBITDA) | 3.37 | 132.3% |
| 10-Year DCF (EBITDA) | 4.04 | 178.9% |
Is Image Scan Holdings PLC (IGE.L) a buy or a sell? Image Scan Holdings PLC is definitely a buy. Based on our DCF analysis, Image Scan Holdings PLC (IGE.L) appears to be significantly undervalued with upside potential of 162.1%. 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 $1.45.