What is KAPE.L's DCF valuation?

Kape Technologies PLC (KAPE.L) DCF Valuation Analysis

Executive Summary

As of December 15, 2025, Kape Technologies PLC has a Discounted Cash Flow (DCF) derived fair value of $415.29 per share. With the current market price at $285.00, this represents a potential upside of 277.7%.

Key Metrics Value
DCF Fair Value (5-year) $415.29
DCF Fair Value (10-year) $0.00
Potential Upside (5-year) 45.7%
Potential Upside (10-year) 277.7%
Discount Rate (WACC) 7.0% - 8.6%

Financial Performance & Projections

Revenue Trends

Revenue is projected to grow from $623 million in 12-2022 to $5561 million by 12-2032, representing a compound annual growth rate of approximately 24.5%.

Fiscal Year Revenue (USD millions) Growth
12-2022 623 170%
12-2023 655 5%
12-2024 940 44%
12-2025 1391 48%
12-2026 1860 34%
12-2027 2488 34%
12-2028 3060 23%
12-2029 3687 20%
12-2030 4333 18%
12-2031 4972 15%
12-2032 5561 12%

Profitability Projections

Net profit margin is expected to improve from 11% in 12-2022 to 11% by 12-2032, driven by operational efficiency and economies of scale.

Fiscal Year Net Profit (USD millions) Profit Margin
12-2022 71 11%
12-2023 70 11%
12-2024 100 11%
12-2025 148 11%
12-2026 198 11%
12-2027 265 11%
12-2028 326 11%
12-2029 393 11%
12-2030 462 11%
12-2031 530 11%
12-2032 593 11%

DCF Model Components

1. Capital Expenditures (CapEx)

with a 5-year average of $7 million. Projected CapEx is expected to maintain at approximately 4% 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)
12-2023 12
12-2024 18
12-2025 28
12-2026 41
12-2027 56
12-2028 74

3. Working Capital Requirements

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

Components Average Days
Days Receivables 40
Days Inventory 3
Days Payables 67

4. Free Cash Flow Projections

Fiscal Year EBITDA Tax CapEx Change in NWC FCF
2023 117 28 25 23 41
2024 169 40 36 61 33
2025 252 59 53 11 129
2026 339 79 71 66 123
2027 455 105 95 78 177

DCF Valuation Parameters

Key Assumptions

  • Discount Rate (WACC): WACC / Discount Rate (selected: 7.0% - 8.6%)
  • Long-Term Growth Rate: Long-term Growth Rate (selected: 2.0% - 4.0%)
  • Terminal EV/EBITDA Multiple: 12.4x (based on peer average)

Valuation Summary

Valuation Method Fair Price (USD) Potential Upside
5-Year DCF (Growth) 415.29 45.7%
10-Year DCF (Growth) 0.00 277.7%
5-Year DCF (EBITDA) 570.46 100.2%
10-Year DCF (EBITDA) 1209.16 324.3%

Enterprise Value Breakdown

  • 5-Year Model: $2,495M
  • 10-Year Model: $6,251M

Investment Conclusion

Is Kape Technologies PLC (KAPE.L) a buy or a sell? Kape Technologies PLC is definitely a buy. Based on our DCF analysis, Kape Technologies PLC (KAPE.L) appears to be significantly undervalued with upside potential of 277.7%. 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:

  • Steady revenue growth (24.5% CAGR)

Investors should consider a strong buy at the current market price of $285.00.