As of December 15, 2025, Promotora de Informaciones SA has a Discounted Cash Flow (DCF) derived fair value of $0.85 per share. With the current market price at $0.36, this represents a potential upside of 136.8%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.60 |
| DCF Fair Value (10-year) | $0.85 |
| Potential Upside (5-year) | 66.5% |
| Potential Upside (10-year) | 136.8% |
| Discount Rate (WACC) | 5.9% - 9.9% |
Revenue is projected to grow from $881 million in 12-2024 to $1481 million by 12-2034, representing a compound annual growth rate of approximately 5.3%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 881 | 7% |
| 12-2025 | 954 | 8% |
| 12-2026 | 992 | 4% |
| 12-2027 | 1012 | 2% |
| 12-2028 | 1097 | 8% |
| 12-2029 | 1183 | 8% |
| 12-2030 | 1233 | 4% |
| 12-2031 | 1329 | 8% |
| 12-2032 | 1383 | 4% |
| 12-2033 | 1428 | 3% |
| 12-2034 | 1481 | 4% |
Net profit margin is expected to improve from -1% in 12-2024 to 2% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | (11) | -1% |
| 12-2025 | 16 | 2% |
| 12-2026 | 16 | 2% |
| 12-2027 | 17 | 2% |
| 12-2028 | 18 | 2% |
| 12-2029 | 19 | 2% |
| 12-2030 | 20 | 2% |
| 12-2031 | 22 | 2% |
| 12-2032 | 23 | 2% |
| 12-2033 | 23 | 2% |
| 12-2034 | 24 | 2% |
with a 5-year average of $46 million. Projected CapEx is expected to maintain at approximately 6% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 48 |
| 12-2026 | 51 |
| 12-2027 | 52 |
| 12-2028 | 56 |
| 12-2029 | 60 |
| 12-2030 | 64 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 95 |
| Days Inventory | 60 |
| Days Payables | 221 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 3M/2025 | 40 | 1 | 14 | (1) | 26 |
| 2026 | 168 | 5 | 57 | 5 | 100 |
| 2027 | 171 | 6 | 58 | 4 | 103 |
| 2028 | 185 | 6 | 63 | 5 | 111 |
| 2029 | 200 | 6 | 68 | 8 | 117 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.60 | 66.5% |
| 10-Year DCF (Growth) | 0.85 | 136.8% |
| 5-Year DCF (EBITDA) | 0.13 | -62.9% |
| 10-Year DCF (EBITDA) | 0.41 | 14.7% |
Is Promotora de Informaciones SA (PRS.MC) a buy or a sell? Promotora de Informaciones SA is definitely a buy. Based on our DCF analysis, Promotora de Informaciones SA (PRS.MC) appears to be significantly undervalued with upside potential of 136.8%. 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 $0.36.