JPmorgan Russian Securities PLC (JRS.L) DCF Valuation Analysis

Executive Summary

As of December 15, 2025, JPmorgan Russian Securities PLC has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $96.50, this represents a potential upside of -17397.4%.

Key Metrics	Value
DCF Fair Value (5-year)	$0.00
DCF Fair Value (10-year)	$0.00
Potential Upside (5-year)	-17707.0%
Potential Upside (10-year)	-17397.4%
Discount Rate (WACC)	8.5% - 9.7%

Financial Performance & Projections

Revenue Trends

Fiscal Year	Revenue (USD millions)	Growth
10-2022	(353)	319%
10-2023	(372)	5%
10-2024	(379)	2%
10-2025	(387)	2%
10-2026	(398)	3%
10-2027	(418)	5%
10-2028	(426)	2%
10-2029	(435)	2%
10-2030	(447)	3%
10-2031	(473)	6%
10-2032	(482)	2%

Profitability Projections

Net profit margin is expected to improve from 101% in 10-2022 to -47611% by 10-2032, driven by operational efficiency and economies of scale.

Fiscal Year	Net Profit (USD millions)	Profit Margin
10-2022	(355)	101%
10-2023	(367)	-36714%
10-2024	(374)	-37443%
10-2025	(382)	-38187%
10-2026	(393)	-39333%
10-2027	(412)	-41230%
10-2028	(421)	-42054%
10-2029	(429)	-42907%
10-2030	(441)	-44146%
10-2031	(467)	-46679%
10-2032	(476)	-47611%

DCF Model Components

1. Capital Expenditures (CapEx)

. Projected CapEx is expected to maintain at approximately 0% of revenue.

2. Depreciation & Amortization

Depreciation is based on an average useful life of 5 years for capital assets.

Fiscal Year	D&A (USD millions)
10-2023	0
10-2024	0
10-2025	0
10-2026	0
10-2027	0
10-2028	0

3. Working Capital Requirements

Net working capital is expected to increase gradually, with projected changes affecting free cash flow.

Components	Average Days
Days Receivables	0
Days Inventory	0
Days Payables	0

4. Free Cash Flow Projections

Fiscal Year	EBITDA	Tax	CapEx	Change in NWC	FCF
2023	(373)	(6)	(0)	0	(367)
2024	(381)	(6)	(0)	0	(374)
2025	(388)	(6)	(0)	0	(382)
2026	(400)	(7)	(0)	0	(393)
2027	(419)	(7)	(0)	0	(412)

DCF Valuation Parameters

Key Assumptions

• Discount Rate (WACC): WACC / Discount Rate (selected: 8.5% - 9.7%)
• Long-Term Growth Rate: Long-term Growth Rate (selected: 3.0% - 5.0%)
• Terminal EV/EBITDA Multiple: 6.8x (based on peer average)

Valuation Summary

Valuation Method	Fair Price (USD)	Potential Upside
5-Year DCF (Growth)	0.00	-17707.0%
10-Year DCF (Growth)	0.00	-17397.4%
5-Year DCF (EBITDA)	0.00	-100.0%
10-Year DCF (EBITDA)	0.00	-100.0%

Enterprise Value Breakdown

• 5-Year Model: $(6,789)M
• 10-Year Model: $(6,670)M

Investment Conclusion

Is JPmorgan Russian Securities PLC (JRS.L) a buy or a sell? JPmorgan Russian Securities PLC is definitely a sell. Based on our DCF analysis, JPmorgan Russian Securities PLC (JRS.L) appears to be overvalued with upside potential of -17397.4%. 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:

• Strong free cash flow generation

Investors should consider reducing exposure at the current market price of $96.50.