What is PTRO.L's DCF valuation?

Pelatro PLC (PTRO.L) DCF Valuation Analysis

Executive Summary

As of December 15, 2025, Pelatro PLC has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $1.02, this represents a potential upside of -60897.2%.

Key Metrics Value
DCF Fair Value (5-year) $0.00
DCF Fair Value (10-year) $0.00
Potential Upside (5-year) -44773.8%
Potential Upside (10-year) -60897.2%
Discount Rate (WACC) 5.7% - 12.7%

Financial Performance & Projections

Revenue Trends

Revenue is projected to grow from $5 million in 12-2022 to $29 million by 12-2032, representing a compound annual growth rate of approximately 19.2%.

Fiscal Year Revenue (USD millions) Growth
12-2022 5 26%
12-2023 8 43%
12-2024 10 25%
12-2025 12 26%
12-2026 14 16%
12-2027 16 18%
12-2028 19 16%
12-2029 21 12%
12-2030 24 12%
12-2031 26 10%
12-2032 29 12%

Profitability Projections

Net profit margin is expected to improve from -267% in 12-2022 to -203% by 12-2032, driven by operational efficiency and economies of scale.

Fiscal Year Net Profit (USD millions) Profit Margin
12-2022 (14) -267%
12-2023 (16) -210%
12-2024 (20) -208%
12-2025 (25) -207%
12-2026 (29) -205%
12-2027 (33) -204%
12-2028 (39) -204%
12-2029 (44) -203%
12-2030 (49) -203%
12-2031 (53) -203%
12-2032 (59) -203%

DCF Model Components

1. Capital Expenditures (CapEx)

with a 5-year average of $3 million. Projected CapEx is expected to maintain at approximately 50% of revenue.

2. Depreciation & Amortization

Depreciation is based on an average useful life of 5 years for capital assets.

Fiscal Year D&A (USD millions)
12-2023 3
12-2024 4
12-2025 4
12-2026 5
12-2027 6
12-2028 7

3. Working Capital Requirements

Net working capital is expected to increase gradually, with projected changes affecting free cash flow.

Components Average Days
Days Receivables 356
Days Inventory 0
Days Payables 59

4. Free Cash Flow Projections

Fiscal Year EBITDA Tax CapEx Change in NWC FCF
2023 (16) (4) 4 2 (18)
2024 (20) (4) 5 0 (21)
2025 (26) (5) 6 3 (30)
2026 (29) (6) 7 1 (32)
2027 (34) (7) 8 2 (37)

DCF Valuation Parameters

Key Assumptions

  • Discount Rate (WACC): WACC / Discount Rate (selected: 5.7% - 12.7%)
  • Long-Term Growth Rate: Long-term Growth Rate (selected: 3.0% - 5.0%)
  • Terminal EV/EBITDA Multiple: 3.6x (based on peer average)

Valuation Summary

Valuation Method Fair Price (USD) Potential Upside
5-Year DCF (Growth) 0.00 -44773.8%
10-Year DCF (Growth) 0.00 -60897.2%
5-Year DCF (EBITDA) 0.00 -100.0%
10-Year DCF (EBITDA) 0.00 -100.0%

Enterprise Value Breakdown

  • 5-Year Model: $(531)M
  • 10-Year Model: $(723)M

Investment Conclusion

Is Pelatro PLC (PTRO.L) a buy or a sell? Pelatro PLC is definitely a sell. Based on our DCF analysis, Pelatro PLC (PTRO.L) appears to be overvalued with upside potential of -60897.2%. 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:

  • Expanding profit margins (from -267% to -203%)
  • Steady revenue growth (19.2% CAGR)
  • Strong free cash flow generation

Investors should consider reducing exposure at the current market price of $1.02.