As of June 7, 2025, KKV Secured Loan Fund Limited has a Discounted Cash Flow (DCF) derived fair value of $111.89 per share. With the current market price at $10.97, this represents a potential upside of 919.5%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $99.31 |
| DCF Fair Value (10-year) | $111.89 |
| Potential Upside (5-year) | 804.9% |
| Potential Upside (10-year) | 919.5% |
| Discount Rate (WACC) | 6.5% - 8.2% |
Revenue is projected to grow from $21 million in 06-2021 to $32 million by 06-2031, representing a compound annual growth rate of approximately 4.3%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 06-2021 | 21 | 43% |
| 06-2022 | 22 | 4% |
| 06-2023 | 23 | 6% |
| 06-2024 | 25 | 8% |
| 06-2025 | 26 | 3% |
| 06-2026 | 28 | 6% |
| 06-2027 | 29 | 7% |
| 06-2028 | 30 | 3% |
| 06-2029 | 31 | 3% |
| 06-2030 | 32 | 2% |
| 06-2031 | 32 | 2% |
Net profit margin is expected to improve from 71% in 06-2021 to 58% by 06-2031, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 06-2021 | 15 | 71% |
| 06-2022 | 13 | 58% |
| 06-2023 | 14 | 58% |
| 06-2024 | 15 | 58% |
| 06-2025 | 15 | 58% |
| 06-2026 | 16 | 58% |
| 06-2027 | 17 | 58% |
| 06-2028 | 17 | 58% |
| 06-2029 | 18 | 58% |
| 06-2030 | 18 | 58% |
| 06-2031 | 19 | 58% |
with a 5-year average of $0 million. Projected CapEx is expected to maintain at approximately 0% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 06-2022 | 0 |
| 06-2023 | 0 |
| 06-2024 | 0 |
| 06-2025 | 0 |
| 06-2026 | 0 |
| 06-2027 | 0 |
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 | 19 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2022 | 38 | 3 | 0 | 0 | 35 |
| 2023 | 40 | 3 | 0 | (0) | 37 |
| 2024 | 43 | 3 | 0 | (0) | 40 |
| 2025 | 45 | 4 | 0 | (0) | 41 |
| 2026 | 47 | 4 | 0 | (0) | 44 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 99.31 | 804.9% |
| 10-Year DCF (Growth) | 111.89 | 919.5% |
| 5-Year DCF (EBITDA) | 61.09 | 456.8% |
| 10-Year DCF (EBITDA) | 79.57 | 625.4% |
Is KKV Secured Loan Fund Limited (KKVL.L) a buy or a sell? KKV Secured Loan Fund Limited is definitely a buy. Based on our DCF analysis, KKV Secured Loan Fund Limited (KKVL.L) appears to be significantly undervalued with upside potential of 919.5%. 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 $10.97.