As of June 19, 2025, Polytec Holding AG has a Discounted Cash Flow (DCF) derived fair value of $8.84 per share. With the current market price at $3.30, this represents a potential upside of 167.9%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $4.92 |
| DCF Fair Value (10-year) | $8.84 |
| Potential Upside (5-year) | 49.0% |
| Potential Upside (10-year) | 167.9% |
| Discount Rate (WACC) | 4.6% - 15.9% |
Revenue is projected to grow from $678 million in 12-2024 to $1253 million by 12-2034, representing a compound annual growth rate of approximately 6.3%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 678 | 7% |
| 12-2025 | 714 | 5% |
| 12-2026 | 762 | 7% |
| 12-2027 | 796 | 4% |
| 12-2028 | 834 | 5% |
| 12-2029 | 898 | 8% |
| 12-2030 | 940 | 5% |
| 12-2031 | 1002 | 7% |
| 12-2032 | 1077 | 7% |
| 12-2033 | 1171 | 9% |
| 12-2034 | 1253 | 7% |
Net profit margin is expected to improve from -1% in 12-2024 to 3% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | (7) | -1% |
| 12-2025 | (1) | 0% |
| 12-2026 | 5 | 1% |
| 12-2027 | 12 | 1% |
| 12-2028 | 19 | 2% |
| 12-2029 | 27 | 3% |
| 12-2030 | 28 | 3% |
| 12-2031 | 30 | 3% |
| 12-2032 | 33 | 3% |
| 12-2033 | 35 | 3% |
| 12-2034 | 38 | 3% |
with a 5-year average of $24 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) |
|---|---|
| 12-2025 | 27 |
| 12-2026 | 26 |
| 12-2027 | 28 |
| 12-2028 | 30 |
| 12-2029 | 33 |
| 12-2030 | 35 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 69 |
| Days Inventory | 42 |
| Days Payables | 67 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 9M/2025 | 28 | (0) | 22 | 16 | (9) |
| 2026 | 45 | 1 | 31 | 4 | 9 |
| 2027 | 56 | 3 | 33 | 3 | 18 |
| 2028 | 68 | 4 | 34 | 10 | 20 |
| 2029 | 81 | 6 | 37 | 9 | 30 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 4.92 | 49.0% |
| 10-Year DCF (Growth) | 8.84 | 167.9% |
| 5-Year DCF (EBITDA) | 3.75 | 13.5% |
| 10-Year DCF (EBITDA) | 7.28 | 120.7% |
Is Polytec Holding AG (PYT.VI) a buy or a sell? Polytec Holding AG is definitely a buy. Based on our DCF analysis, Polytec Holding AG (PYT.VI) appears to be significantly undervalued with upside potential of 167.9%. 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 a strong buy at the current market price of $3.30.