As of May 23, 2025, Titon Holdings PLC has a Discounted Cash Flow (DCF) derived fair value of $68.79 per share. With the current market price at $74.00, this represents a potential upside of -7.0%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $68.79 |
| Potential Upside (5-year) | -260.9% |
| Potential Upside (10-year) | -7.0% |
| Discount Rate (WACC) | 5.1% - 7.2% |
Revenue is projected to grow from $15 million in 09-2024 to $20 million by 09-2034, representing a compound annual growth rate of approximately 2.9%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 09-2024 | 15 | 31% |
| 09-2025 | 17 | 8% |
| 09-2026 | 17 | 2% |
| 09-2027 | 17 | 2% |
| 09-2028 | 18 | 2% |
| 09-2029 | 18 | 3% |
| 09-2030 | 19 | 2% |
| 09-2031 | 19 | 3% |
| 09-2032 | 20 | 2% |
| 09-2033 | 20 | 2% |
| 09-2034 | 20 | 2% |
Net profit margin is expected to improve from -13% in 09-2024 to 3% by 09-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 09-2024 | (2) | -13% |
| 09-2025 | (2) | -10% |
| 09-2026 | (1) | -7% |
| 09-2027 | (1) | -4% |
| 09-2028 | (0) | -2% |
| 09-2029 | 0 | 0% |
| 09-2030 | 0 | 1% |
| 09-2031 | 0 | 1% |
| 09-2032 | 0 | 2% |
| 09-2033 | 0 | 2% |
| 09-2034 | 1 | 3% |
with a 5-year average of $1 million. Projected CapEx is expected to maintain at approximately 3% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 09-2025 | 1 |
| 09-2026 | 1 |
| 09-2027 | 0 |
| 09-2028 | 0 |
| 09-2029 | 0 |
| 09-2030 | 1 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 58 |
| Days Inventory | 140 |
| Days Payables | 57 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2025 | (1) | (0) | 0 | 1 | (3) |
| 2026 | (1) | (0) | 0 | (0) | (1) |
| 2027 | (0) | (0) | 0 | (0) | (1) |
| 2028 | 0 | (0) | 1 | 0 | (1) |
| 2029 | 1 | 0 | 1 | (0) | 0 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -260.9% |
| 10-Year DCF (Growth) | 68.79 | -7.0% |
| 5-Year DCF (EBITDA) | 0.00 | -100.0% |
| 10-Year DCF (EBITDA) | 46.72 | -36.9% |
Is Titon Holdings PLC (TON.L) a buy or a sell? Titon Holdings PLC is definitely a sell. Based on our DCF analysis, Titon Holdings PLC (TON.L) appears to be fairly valued with upside potential of -7.0%. 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 hold at the current market price of $74.00.