As of May 23, 2025, Solid State PLC has a Discounted Cash Flow (DCF) derived fair value of $292.15 per share. With the current market price at $180.00, this represents a potential upside of 62.3%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $266.52 |
| DCF Fair Value (10-year) | $292.15 |
| Potential Upside (5-year) | 48.1% |
| Potential Upside (10-year) | 62.3% |
| Discount Rate (WACC) | 6.3% - 8.2% |
Revenue is projected to grow from $163 million in 03-2024 to $168 million by 03-2034, representing a compound annual growth rate of approximately 0.3%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 03-2024 | 163 | 29% |
| 03-2025 | 124 | -24% |
| 03-2026 | 133 | 7% |
| 03-2027 | 138 | 4% |
| 03-2028 | 140 | 2% |
| 03-2029 | 149 | 6% |
| 03-2030 | 155 | 4% |
| 03-2031 | 158 | 2% |
| 03-2032 | 162 | 3% |
| 03-2033 | 165 | 2% |
| 03-2034 | 168 | 2% |
Net profit margin is expected to improve from 5% in 03-2024 to 6% by 03-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 03-2024 | 9 | 5% |
| 03-2025 | 7 | 6% |
| 03-2026 | 8 | 6% |
| 03-2027 | 8 | 6% |
| 03-2028 | 8 | 6% |
| 03-2029 | 9 | 6% |
| 03-2030 | 9 | 6% |
| 03-2031 | 9 | 6% |
| 03-2032 | 10 | 6% |
| 03-2033 | 10 | 6% |
| 03-2034 | 10 | 6% |
with a 5-year average of $2 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) |
|---|---|
| 03-2025 | 2 |
| 03-2026 | 2 |
| 03-2027 | 2 |
| 03-2028 | 2 |
| 03-2029 | 2 |
| 03-2030 | 2 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 58 |
| Days Inventory | 112 |
| Days Payables | 47 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 6M/2025 | 6 | 1 | 1 | (4) | 8 |
| 2026 | 13 | 2 | 2 | 2 | 7 |
| 2027 | 14 | 2 | 2 | 1 | 9 |
| 2028 | 14 | 2 | 2 | 1 | 8 |
| 2029 | 15 | 2 | 2 | 2 | 8 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 266.52 | 48.1% |
| 10-Year DCF (Growth) | 292.15 | 62.3% |
| 5-Year DCF (EBITDA) | 171.86 | -4.5% |
| 10-Year DCF (EBITDA) | 203.97 | 13.3% |
Is Solid State PLC (SOLI.L) a buy or a sell? Solid State PLC is definitely a buy. Based on our DCF analysis, Solid State PLC (SOLI.L) appears to be significantly undervalued with upside potential of 62.3%. 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 $180.00.