As of June 12, 2025, John Lewis of Hungerford PLC has a Discounted Cash Flow (DCF) derived fair value of $3.01 per share. With the current market price at $1.35, this represents a potential upside of 123.0%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $2.01 |
| DCF Fair Value (10-year) | $3.01 |
| Potential Upside (5-year) | 48.9% |
| Potential Upside (10-year) | 123.0% |
| Discount Rate (WACC) | 7.5% - 9.5% |
Revenue is projected to grow from $10 million in 06-2022 to $28 million by 06-2032, representing a compound annual growth rate of approximately 10.8%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 06-2022 | 10 | 31% |
| 06-2023 | 12 | 17% |
| 06-2024 | 14 | 13% |
| 06-2025 | 15 | 12% |
| 06-2026 | 18 | 15% |
| 06-2027 | 20 | 14% |
| 06-2028 | 22 | 8% |
| 06-2029 | 23 | 7% |
| 06-2030 | 25 | 5% |
| 06-2031 | 27 | 10% |
| 06-2032 | 28 | 5% |
Net profit margin is expected to improve from 0% in 06-2022 to 0% by 06-2032, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 06-2022 | 0 | 0% |
| 06-2023 | 0 | 0% |
| 06-2024 | 0 | 0% |
| 06-2025 | 0 | 0% |
| 06-2026 | 0 | 0% |
| 06-2027 | 0 | 0% |
| 06-2028 | 0 | 0% |
| 06-2029 | 0 | 0% |
| 06-2030 | 0 | 0% |
| 06-2031 | 0 | 0% |
| 06-2032 | 0 | 0% |
with a 5-year average of $0 million. Projected CapEx is expected to maintain at approximately 2% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 06-2023 | 0 |
| 06-2024 | 0 |
| 06-2025 | 0 |
| 06-2026 | 0 |
| 06-2027 | 0 |
| 06-2028 | 0 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 19 |
| Days Inventory | 17 |
| Days Payables | 106 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 6M/2023 | 0 | 0 | 0 | (0) | 0 |
| 2024 | 0 | 0 | 0 | 0 | 0 |
| 2025 | 1 | 0 | 0 | (0) | 0 |
| 2026 | 1 | 0 | 0 | (0) | 1 |
| 2027 | 1 | 0 | 0 | (0) | 0 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 2.01 | 48.9% |
| 10-Year DCF (Growth) | 3.01 | 123.0% |
| 5-Year DCF (EBITDA) | 1.28 | -4.9% |
| 10-Year DCF (EBITDA) | 2.45 | 81.6% |
Is John Lewis of Hungerford PLC (JLH.L) a buy or a sell? John Lewis of Hungerford PLC is definitely a buy. Based on our DCF analysis, John Lewis of Hungerford PLC (JLH.L) appears to be significantly undervalued with upside potential of 123.0%. 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 $1.35.