As of May 23, 2025, Next PLC 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 17.9%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -11.3% |
| Potential Upside (10-year) | 17.9% |
| Discount Rate (WACC) | 6.8% - 8.4% |
Revenue is projected to grow from $6118 million in 01-2025 to $11984 million by 01-2035, representing a compound annual growth rate of approximately 7.0%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 01-2025 | 6118 | 11% |
| 01-2026 | 6431 | 5% |
| 01-2027 | 6879 | 7% |
| 01-2028 | 7484 | 9% |
| 01-2029 | 8062 | 8% |
| 01-2030 | 8863 | 10% |
| 01-2031 | 9597 | 8% |
| 01-2032 | 10096 | 5% |
| 01-2033 | 10553 | 5% |
| 01-2034 | 11150 | 6% |
| 01-2035 | 11984 | 7% |
Net profit margin is expected to improve from 12% in 01-2025 to 13% by 01-2035, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 01-2025 | 743 | 12% |
| 01-2026 | 848 | 13% |
| 01-2027 | 907 | 13% |
| 01-2028 | 987 | 13% |
| 01-2029 | 1063 | 13% |
| 01-2030 | 1169 | 13% |
| 01-2031 | 1266 | 13% |
| 01-2032 | 1332 | 13% |
| 01-2033 | 1392 | 13% |
| 01-2034 | 1471 | 13% |
| 01-2035 | 1581 | 13% |
with a 5-year average of $207 million. Projected CapEx is expected to maintain at approximately 4% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 01-2026 | 230 |
| 01-2027 | 237 |
| 01-2028 | 252 |
| 01-2029 | 279 |
| 01-2030 | 325 |
| 01-2031 | 352 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 88 |
| Days Inventory | 90 |
| Days Payables | 34 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2026 | 1353 | 189 | 277 | 226 | 661 |
| 2027 | 1438 | 202 | 296 | 108 | 831 |
| 2028 | 1559 | 220 | 322 | 172 | 844 |
| 2029 | 1687 | 237 | 347 | 215 | 887 |
| 2030 | 1873 | 261 | 382 | 244 | 986 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -11.3% |
| 10-Year DCF (Growth) | 0.00 | 17.9% |
| 5-Year DCF (EBITDA) | 8425.44 | +Inf% |
| 10-Year DCF (EBITDA) | 11460.01 | +Inf% |
Is Next PLC (NXT.L) a buy or a sell? Next PLC is definitely a buy. Based on our DCF analysis, Next PLC (NXT.L) appears to be overvalued with upside potential of 17.9%. 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.