As of May 28, 2025, Safestyle UK PLC has a Discounted Cash Flow (DCF) derived fair value of $128.78 per share. With the current market price at $0.32, this represents a potential upside of 40143.5%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $48.62 |
| DCF Fair Value (10-year) | $128.78 |
| Potential Upside (5-year) | 15095.2% |
| Potential Upside (10-year) | 40143.5% |
| Discount Rate (WACC) | 4.2% - 4.7% |
Revenue is projected to grow from $154 million in 01-2023 to $285 million by 01-2033, representing a compound annual growth rate of approximately 6.3%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 01-2023 | 154 | 8% |
| 01-2024 | 160 | 4% |
| 01-2025 | 175 | 9% |
| 01-2026 | 179 | 2% |
| 01-2027 | 190 | 6% |
| 01-2028 | 204 | 7% |
| 01-2029 | 213 | 5% |
| 01-2030 | 234 | 10% |
| 01-2031 | 250 | 7% |
| 01-2032 | 265 | 6% |
| 01-2033 | 285 | 8% |
Net profit margin is expected to improve from -4% in 01-2023 to 1% by 01-2033, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 01-2023 | (7) | -4% |
| 01-2024 | (5) | -3% |
| 01-2025 | (4) | -2% |
| 01-2026 | (2) | -1% |
| 01-2027 | 0 | 0% |
| 01-2028 | 3 | 1% |
| 01-2029 | 3 | 1% |
| 01-2030 | 3 | 1% |
| 01-2031 | 3 | 1% |
| 01-2032 | 4 | 1% |
| 01-2033 | 4 | 1% |
with a 5-year average of $1 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) |
|---|---|
| 01-2024 | 1 |
| 01-2025 | 1 |
| 01-2026 | 1 |
| 01-2027 | 1 |
| 01-2028 | 2 |
| 01-2029 | 2 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 5 |
| Days Inventory | 17 |
| Days Payables | 28 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 6M/2024 | (2) | (1) | 1 | 1 | (3) |
| 2025 | (2) | (1) | 1 | (0) | (2) |
| 2026 | 1 | (0) | 2 | (0) | 0 |
| 2027 | 4 | 0 | 2 | 0 | 2 |
| 2028 | 7 | 1 | 2 | (0) | 5 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 48.62 | 15095.2% |
| 10-Year DCF (Growth) | 128.78 | 40143.5% |
| 5-Year DCF (EBITDA) | 6.45 | 1915.4% |
| 10-Year DCF (EBITDA) | 32.28 | 9986.3% |
Is Safestyle UK PLC (SFE.L) a buy or a sell? Safestyle UK PLC is definitely a buy. Based on our DCF analysis, Safestyle UK PLC (SFE.L) appears to be significantly undervalued with upside potential of 40143.5%. 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 a strong buy at the current market price of $0.32.