As of June 2, 2025, LPP SA has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $0.00, this represents a potential upside of -22.7%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -39.4% |
| Potential Upside (10-year) | -22.7% |
| Discount Rate (WACC) | 9.1% - 11.8% |
Revenue is projected to grow from $20194 million in 01-2025 to $41977 million by 01-2035, representing a compound annual growth rate of approximately 7.6%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 01-2025 | 20194 | 16% |
| 01-2026 | 21184 | 5% |
| 01-2027 | 22361 | 6% |
| 01-2028 | 24722 | 11% |
| 01-2029 | 26509 | 7% |
| 01-2030 | 28374 | 7% |
| 01-2031 | 30580 | 8% |
| 01-2032 | 33489 | 10% |
| 01-2033 | 36636 | 9% |
| 01-2034 | 39978 | 9% |
| 01-2035 | 41977 | 5% |
Net profit margin is expected to improve from 9% in 01-2025 to 9% by 01-2035, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 01-2025 | 1747 | 9% |
| 01-2026 | 1833 | 9% |
| 01-2027 | 1934 | 9% |
| 01-2028 | 2139 | 9% |
| 01-2029 | 2293 | 9% |
| 01-2030 | 2455 | 9% |
| 01-2031 | 2646 | 9% |
| 01-2032 | 2897 | 9% |
| 01-2033 | 3169 | 9% |
| 01-2034 | 3459 | 9% |
| 01-2035 | 3631 | 9% |
with a 5-year average of $1170 million. Projected CapEx is expected to maintain at approximately 8% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 01-2026 | 1343 |
| 01-2027 | 1508 |
| 01-2028 | 1670 |
| 01-2029 | 1875 |
| 01-2030 | 1964 |
| 01-2031 | 2114 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 21 |
| Days Inventory | 155 |
| Days Payables | 7 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2026 | 3879 | 529 | 1690 | (254) | 1915 |
| 2027 | 4185 | 558 | 1783 | 231 | 1613 |
| 2028 | 4631 | 617 | 1972 | 827 | 1215 |
| 2029 | 5050 | 662 | 2114 | 302 | 1972 |
| 2030 | 5362 | 708 | 2263 | 479 | 1911 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -39.4% |
| 10-Year DCF (Growth) | 0.00 | -22.7% |
| 5-Year DCF (EBITDA) | 11347.41 | +Inf% |
| 10-Year DCF (EBITDA) | 13335.48 | +Inf% |
Is LPP SA (LPP.WA) a buy or a sell? LPP SA is definitely a sell. Based on our DCF analysis, LPP SA (LPP.WA) appears to be overvalued with upside potential of -22.7%. 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:
Investors should consider reducing exposure at the current market price of $0.00.