As of June 14, 2025, RPS Group PLC has a Discounted Cash Flow (DCF) derived fair value of $284.97 per share. With the current market price at $221.00, this represents a potential upside of 28.9%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $247.60 |
| DCF Fair Value (10-year) | $284.97 |
| Potential Upside (5-year) | 12.0% |
| Potential Upside (10-year) | 28.9% |
| Discount Rate (WACC) | 6.5% - 8.4% |
Revenue is projected to grow from $476 million in 12-2021 to $757 million by 12-2031, representing a compound annual growth rate of approximately 4.7%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2021 | 476 | 4% |
| 12-2022 | 523 | 10% |
| 12-2023 | 544 | 4% |
| 12-2024 | 563 | 3% |
| 12-2025 | 578 | 3% |
| 12-2026 | 605 | 5% |
| 12-2027 | 640 | 6% |
| 12-2028 | 658 | 3% |
| 12-2029 | 681 | 4% |
| 12-2030 | 727 | 7% |
| 12-2031 | 757 | 4% |
Net profit margin is expected to improve from 1% in 12-2021 to 6% by 12-2031, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2021 | 6 | 1% |
| 12-2022 | 16 | 3% |
| 12-2023 | 21 | 4% |
| 12-2024 | 26 | 5% |
| 12-2025 | 32 | 5% |
| 12-2026 | 38 | 6% |
| 12-2027 | 40 | 6% |
| 12-2028 | 41 | 6% |
| 12-2029 | 43 | 6% |
| 12-2030 | 46 | 6% |
| 12-2031 | 48 | 6% |
with a 5-year average of $12 million. Projected CapEx is expected to maintain at approximately 2% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2022 | 13 |
| 12-2023 | 13 |
| 12-2024 | 11 |
| 12-2025 | 12 |
| 12-2026 | 13 |
| 12-2027 | 13 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 93 |
| Days Inventory | 0 |
| Days Payables | 11 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 6M/2022 | 19 | 2 | 6 | 12 | (1) |
| 2023 | 45 | 5 | 12 | 3 | 25 |
| 2024 | 50 | 6 | 13 | 2 | 29 |
| 2025 | 58 | 7 | 13 | 7 | 31 |
| 2026 | 67 | 9 | 14 | 6 | 38 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 247.60 | 12.0% |
| 10-Year DCF (Growth) | 284.97 | 28.9% |
| 5-Year DCF (EBITDA) | 117.24 | -47.0% |
| 10-Year DCF (EBITDA) | 161.52 | -26.9% |
Is RPS Group PLC (RPS.L) a buy or a sell? RPS Group PLC is definitely a buy. Based on our DCF analysis, RPS Group PLC (RPS.L) appears to be significantly undervalued with upside potential of 28.9%. 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 $221.00.