As of May 24, 2025, TT electronics PLC has a Discounted Cash Flow (DCF) derived fair value of $256.42 per share. With the current market price at $92.10, this represents a potential upside of 178.4%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $208.76 |
| DCF Fair Value (10-year) | $256.42 |
| Potential Upside (5-year) | 126.7% |
| Potential Upside (10-year) | 178.4% |
| Discount Rate (WACC) | 4.8% - 12.4% |
Revenue is projected to grow from $614 million in 12-2023 to $816 million by 12-2033, representing a compound annual growth rate of approximately 2.9%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2023 | 614 | 1% |
| 12-2024 | 565 | -8% |
| 12-2025 | 577 | 2% |
| 12-2026 | 590 | 2% |
| 12-2027 | 627 | 6% |
| 12-2028 | 658 | 5% |
| 12-2029 | 692 | 5% |
| 12-2030 | 717 | 4% |
| 12-2031 | 767 | 7% |
| 12-2032 | 784 | 2% |
| 12-2033 | 816 | 4% |
Net profit margin is expected to improve from -1% in 12-2023 to 5% by 12-2033, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2023 | (7) | -1% |
| 12-2024 | 5 | 1% |
| 12-2025 | 11 | 2% |
| 12-2026 | 18 | 3% |
| 12-2027 | 25 | 4% |
| 12-2028 | 33 | 5% |
| 12-2029 | 34 | 5% |
| 12-2030 | 35 | 5% |
| 12-2031 | 38 | 5% |
| 12-2032 | 39 | 5% |
| 12-2033 | 40 | 5% |
with a 5-year average of $18 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) |
|---|---|
| 12-2024 | 18 |
| 12-2025 | 19 |
| 12-2026 | 19 |
| 12-2027 | 21 |
| 12-2028 | 20 |
| 12-2029 | 21 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 54 |
| Days Inventory | 133 |
| Days Payables | 69 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 6M/2024 | 18 | 1 | 10 | 4 | 3 |
| 2025 | 46 | 5 | 19 | 0 | 21 |
| 2026 | 56 | 8 | 20 | (4) | 32 |
| 2027 | 68 | 11 | 21 | 13 | 23 |
| 2028 | 79 | 14 | 22 | 5 | 37 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 208.76 | 126.7% |
| 10-Year DCF (Growth) | 256.42 | 178.4% |
| 5-Year DCF (EBITDA) | 153.51 | 66.7% |
| 10-Year DCF (EBITDA) | 207.99 | 125.8% |
Is TT electronics PLC (TTG.L) a buy or a sell? TT electronics PLC is definitely a buy. Based on our DCF analysis, TT electronics PLC (TTG.L) appears to be significantly undervalued with upside potential of 178.4%. 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 $92.10.