As of May 29, 2025, Liberated Syndication Inc has a Discounted Cash Flow (DCF) derived fair value of $2.55 per share. With the current market price at $3.75, this represents a potential upside of -32.0%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $2.03 |
| DCF Fair Value (10-year) | $2.55 |
| Potential Upside (5-year) | -45.8% |
| Potential Upside (10-year) | -32.0% |
| Discount Rate (WACC) | 5.8% - 8.5% |
Revenue is projected to grow from $24 million in 12-2019 to $56 million by 12-2029, representing a compound annual growth rate of approximately 8.8%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2019 | 24 | 10% |
| 12-2020 | 25 | 5% |
| 12-2021 | 29 | 16% |
| 12-2022 | 33 | 14% |
| 12-2023 | 37 | 12% |
| 12-2024 | 42 | 12% |
| 12-2025 | 45 | 8% |
| 12-2026 | 48 | 6% |
| 12-2027 | 50 | 5% |
| 12-2028 | 53 | 5% |
| 12-2029 | 56 | 5% |
Net profit margin is expected to improve from 12% in 12-2019 to 11% by 12-2029, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2019 | 3 | 12% |
| 12-2020 | 3 | 11% |
| 12-2021 | 3 | 11% |
| 12-2022 | 4 | 11% |
| 12-2023 | 4 | 11% |
| 12-2024 | 5 | 11% |
| 12-2025 | 5 | 11% |
| 12-2026 | 5 | 11% |
| 12-2027 | 5 | 11% |
| 12-2028 | 6 | 11% |
| 12-2029 | 6 | 11% |
with a 5-year average of $0 million. Projected CapEx is expected to maintain at approximately 1% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2020 | 0 |
| 12-2021 | 0 |
| 12-2022 | 0 |
| 12-2023 | 0 |
| 12-2024 | 0 |
| 12-2025 | 0 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 13 |
| Days Inventory | 0 |
| Days Payables | 76 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 3M/2020 | 1 | 0 | 0 | 0 | 1 |
| 2021 | 5 | 1 | 0 | (0) | 4 |
| 2022 | 5 | 1 | 0 | 0 | 4 |
| 2023 | 6 | 2 | 0 | 0 | 4 |
| 2024 | 7 | 2 | 0 | (0) | 5 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 2.03 | -45.8% |
| 10-Year DCF (Growth) | 2.55 | -32.0% |
| 5-Year DCF (EBITDA) | 3.18 | -15.1% |
| 10-Year DCF (EBITDA) | 3.70 | -1.5% |
Is Liberated Syndication Inc (LSYN) a buy or a sell? Liberated Syndication Inc is definitely a sell. Based on our DCF analysis, Liberated Syndication Inc (LSYN) appears to be overvalued with upside potential of -32.0%. 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 $3.75.