As of May 31, 2025, Londonmetric Property PLC has a Discounted Cash Flow (DCF) derived fair value of $300.49 per share. With the current market price at $199.50, this represents a potential upside of 50.6%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $261.52 |
| DCF Fair Value (10-year) | $300.49 |
| Potential Upside (5-year) | 31.1% |
| Potential Upside (10-year) | 50.6% |
| Discount Rate (WACC) | 7.3% - 9.3% |
Revenue is projected to grow from $397 million in 03-2025 to $658 million by 03-2035, representing a compound annual growth rate of approximately 5.2%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 03-2025 | 397 | 123% |
| 03-2026 | 415 | 5% |
| 03-2027 | 434 | 5% |
| 03-2028 | 459 | 6% |
| 03-2029 | 486 | 6% |
| 03-2030 | 510 | 5% |
| 03-2031 | 541 | 6% |
| 03-2032 | 587 | 9% |
| 03-2033 | 608 | 4% |
| 03-2034 | 640 | 5% |
| 03-2035 | 658 | 3% |
Net profit margin is expected to improve from 88% in 03-2025 to 89% by 03-2035, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 03-2025 | 351 | 88% |
| 03-2026 | 369 | 89% |
| 03-2027 | 386 | 89% |
| 03-2028 | 408 | 89% |
| 03-2029 | 432 | 89% |
| 03-2030 | 454 | 89% |
| 03-2031 | 481 | 89% |
| 03-2032 | 522 | 89% |
| 03-2033 | 541 | 89% |
| 03-2034 | 569 | 89% |
| 03-2035 | 585 | 89% |
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) |
|---|---|
| 03-2026 | 0 |
| 03-2027 | 0 |
| 03-2028 | 0 |
| 03-2029 | 0 |
| 03-2030 | 0 |
| 03-2031 | 0 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 14 |
| Days Inventory | 0 |
| Days Payables | 1,454 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2026 | 371 | 0 | 0 | (19) | 390 |
| 2027 | 388 | 0 | 0 | 11 | 377 |
| 2028 | 411 | 0 | 0 | (0) | 411 |
| 2029 | 435 | 0 | 0 | (3) | 438 |
| 2030 | 456 | 0 | 0 | 3 | 453 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 261.52 | 31.1% |
| 10-Year DCF (Growth) | 300.49 | 50.6% |
| 5-Year DCF (EBITDA) | 193.68 | -2.9% |
| 10-Year DCF (EBITDA) | 241.16 | 20.9% |
Is Londonmetric Property PLC (LMP.L) a buy or a sell? Londonmetric Property PLC is definitely a buy. Based on our DCF analysis, Londonmetric Property PLC (LMP.L) appears to be significantly undervalued with upside potential of 50.6%. 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 $199.50.