As of May 29, 2025, Phreesia Inc has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $23.30, this represents a potential upside of -299.9%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -277.5% |
| Potential Upside (10-year) | -299.9% |
| Discount Rate (WACC) | 5.4% - 8.6% |
Revenue is projected to grow from $420 million in 01-2025 to $1518 million by 01-2035, representing a compound annual growth rate of approximately 13.7%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 01-2025 | 420 | 18% |
| 01-2026 | 442 | 5% |
| 01-2027 | 529 | 20% |
| 01-2028 | 619 | 17% |
| 01-2029 | 706 | 14% |
| 01-2030 | 822 | 16% |
| 01-2031 | 954 | 16% |
| 01-2032 | 1086 | 14% |
| 01-2033 | 1237 | 14% |
| 01-2034 | 1379 | 11% |
| 01-2035 | 1518 | 10% |
Net profit margin is expected to improve from -14% in 01-2025 to -5% by 01-2035, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 01-2025 | (59) | -14% |
| 01-2026 | (52) | -12% |
| 01-2027 | (54) | -10% |
| 01-2028 | (54) | -9% |
| 01-2029 | (52) | -7% |
| 01-2030 | (49) | -6% |
| 01-2031 | (55) | -6% |
| 01-2032 | (60) | -6% |
| 01-2033 | (65) | -5% |
| 01-2034 | (69) | -5% |
| 01-2035 | (73) | -5% |
with a 5-year average of $25 million. Projected CapEx is expected to maintain at approximately 10% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 01-2026 | 30 |
| 01-2027 | 34 |
| 01-2028 | 41 |
| 01-2029 | 50 |
| 01-2030 | 61 |
| 01-2031 | 71 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 66 |
| Days Inventory | 0 |
| Days Payables | 25 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2026 | (22) | (0) | 43 | 2 | (68) |
| 2027 | (20) | (0) | 52 | 15 | (87) |
| 2028 | (13) | (0) | 61 | 15 | (89) |
| 2029 | (2) | (0) | 69 | 14 | (86) |
| 2030 | 11 | (0) | 81 | 20 | (89) |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -277.5% |
| 10-Year DCF (Growth) | 0.00 | -299.9% |
| 5-Year DCF (EBITDA) | 0.00 | -100.0% |
| 10-Year DCF (EBITDA) | 0.00 | -100.0% |
Is Phreesia Inc (PHR) a buy or a sell? Phreesia Inc is definitely a sell. Based on our DCF analysis, Phreesia Inc (PHR) appears to be overvalued with upside potential of -299.9%. 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 $23.30.