As of June 10, 2025, Softcat PLC has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $0.00, this represents a potential upside of -26.5%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -32.3% |
| Potential Upside (10-year) | -26.5% |
| Discount Rate (WACC) | 8.3% - 10.1% |
Revenue is projected to grow from $963 million in 07-2024 to $1899 million by 07-2034, representing a compound annual growth rate of approximately 7.0%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 07-2024 | 963 | 2% |
| 07-2025 | 1101 | 14% |
| 07-2026 | 1224 | 11% |
| 07-2027 | 1347 | 10% |
| 07-2028 | 1406 | 4% |
| 07-2029 | 1485 | 6% |
| 07-2030 | 1515 | 2% |
| 07-2031 | 1585 | 5% |
| 07-2032 | 1632 | 3% |
| 07-2033 | 1778 | 9% |
| 07-2034 | 1899 | 7% |
Net profit margin is expected to improve from 12% in 07-2024 to 13% by 07-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 07-2024 | 119 | 12% |
| 07-2025 | 147 | 13% |
| 07-2026 | 164 | 13% |
| 07-2027 | 180 | 13% |
| 07-2028 | 188 | 13% |
| 07-2029 | 199 | 13% |
| 07-2030 | 203 | 13% |
| 07-2031 | 212 | 13% |
| 07-2032 | 218 | 13% |
| 07-2033 | 238 | 13% |
| 07-2034 | 254 | 13% |
with a 5-year average of $6 million. Projected CapEx is expected to maintain at approximately 1% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 07-2025 | 6 |
| 07-2026 | 6 |
| 07-2027 | 7 |
| 07-2028 | 8 |
| 07-2029 | 8 |
| 07-2030 | 9 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 175 |
| Days Inventory | 2 |
| Days Payables | 161 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 6M/2025 | 91 | 17 | 4 | 17 | 53 |
| 2026 | 202 | 39 | 8 | 19 | 137 |
| 2027 | 222 | 43 | 9 | 35 | 136 |
| 2028 | 233 | 45 | 9 | 13 | 167 |
| 2029 | 246 | 47 | 10 | 16 | 173 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -32.3% |
| 10-Year DCF (Growth) | 0.00 | -26.5% |
| 5-Year DCF (EBITDA) | 1038.71 | +Inf% |
| 10-Year DCF (EBITDA) | 1171.69 | +Inf% |
Is Softcat PLC (SCT.L) a buy or a sell? Softcat PLC is definitely a sell. Based on our DCF analysis, Softcat PLC (SCT.L) appears to be overvalued with upside potential of -26.5%. 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 $0.00.