As of May 22, 2025, iomart group PLC has a Discounted Cash Flow (DCF) derived fair value of $187.38 per share. With the current market price at $28.00, this represents a potential upside of 569.2%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $131.12 |
| DCF Fair Value (10-year) | $187.38 |
| Potential Upside (5-year) | 368.3% |
| Potential Upside (10-year) | 569.2% |
| Discount Rate (WACC) | 5.7% - 8.3% |
Revenue is projected to grow from $127 million in 03-2024 to $262 million by 03-2034, representing a compound annual growth rate of approximately 7.5%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 03-2024 | 127 | 10% |
| 03-2025 | 145 | 14% |
| 03-2026 | 162 | 12% |
| 03-2027 | 166 | 3% |
| 03-2028 | 181 | 9% |
| 03-2029 | 195 | 7% |
| 03-2030 | 202 | 4% |
| 03-2031 | 212 | 5% |
| 03-2032 | 226 | 7% |
| 03-2033 | 245 | 8% |
| 03-2034 | 262 | 7% |
Net profit margin is expected to improve from 5% in 03-2024 to 6% by 03-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 03-2024 | 6 | 5% |
| 03-2025 | 8 | 6% |
| 03-2026 | 9 | 6% |
| 03-2027 | 9 | 6% |
| 03-2028 | 10 | 6% |
| 03-2029 | 11 | 6% |
| 03-2030 | 11 | 6% |
| 03-2031 | 12 | 6% |
| 03-2032 | 13 | 6% |
| 03-2033 | 14 | 6% |
| 03-2034 | 15 | 6% |
with a 5-year average of $14 million. Projected CapEx is expected to maintain at approximately 12% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 03-2025 | 14 |
| 03-2026 | 14 |
| 03-2027 | 16 |
| 03-2028 | 18 |
| 03-2029 | 20 |
| 03-2030 | 22 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 40 |
| Days Inventory | 0 |
| Days Payables | 63 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 6M/2025 | 14 | 1 | 9 | 1 | 4 |
| 2026 | 31 | 2 | 19 | 1 | 8 |
| 2027 | 33 | 2 | 20 | (1) | 11 |
| 2028 | 37 | 2 | 22 | 1 | 12 |
| 2029 | 40 | 2 | 23 | 0 | 14 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 131.12 | 368.3% |
| 10-Year DCF (Growth) | 187.38 | 569.2% |
| 5-Year DCF (EBITDA) | 80.17 | 186.3% |
| 10-Year DCF (EBITDA) | 131.00 | 367.8% |
Is iomart group PLC (IOM.L) a buy or a sell? iomart group PLC is definitely a buy. Based on our DCF analysis, iomart group PLC (IOM.L) appears to be significantly undervalued with upside potential of 569.2%. 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 $28.00.