As of June 19, 2025, ULS Technology PLC has a Discounted Cash Flow (DCF) derived fair value of $32.76 per share. With the current market price at $63.70, this represents a potential upside of -48.6%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $17.77 |
| DCF Fair Value (10-year) | $32.76 |
| Potential Upside (5-year) | -72.1% |
| Potential Upside (10-year) | -48.6% |
| Discount Rate (WACC) | 6.5% - 11.1% |
Revenue is projected to grow from $17 million in 03-2021 to $23 million by 03-2031, representing a compound annual growth rate of approximately 3.1%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 03-2021 | 17 | 18% |
| 03-2022 | 18 | 5% |
| 03-2023 | 19 | 5% |
| 03-2024 | 19 | 2% |
| 03-2025 | 19 | 2% |
| 03-2026 | 20 | 2% |
| 03-2027 | 20 | 2% |
| 03-2028 | 21 | 4% |
| 03-2029 | 21 | 2% |
| 03-2030 | 22 | 2% |
| 03-2031 | 23 | 5% |
Net profit margin is expected to improve from -11% in 03-2021 to 1% by 03-2031, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 03-2021 | (2) | -11% |
| 03-2022 | (2) | -9% |
| 03-2023 | (1) | -7% |
| 03-2024 | (1) | -5% |
| 03-2025 | (0) | -3% |
| 03-2026 | (0) | -1% |
| 03-2027 | (0) | 0% |
| 03-2028 | 0 | 0% |
| 03-2029 | 0 | 1% |
| 03-2030 | 0 | 1% |
| 03-2031 | 0 | 1% |
with a 5-year average of $1 million. Projected CapEx is expected to maintain at approximately 4% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 03-2022 | 1 |
| 03-2023 | 1 |
| 03-2024 | 1 |
| 03-2025 | 1 |
| 03-2026 | 1 |
| 03-2027 | 1 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 19 |
| Days Inventory | 0 |
| Days Payables | 59 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 6M/2022 | (0) | (0) | 0 | 0 | (1) |
| 2023 | (1) | (0) | 1 | 0 | (1) |
| 2024 | (0) | (0) | 1 | (0) | (1) |
| 2025 | 0 | (0) | 1 | 0 | (1) |
| 2026 | 1 | (0) | 1 | 0 | (0) |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 17.77 | -72.1% |
| 10-Year DCF (Growth) | 32.76 | -48.6% |
| 5-Year DCF (EBITDA) | 31.63 | -50.3% |
| 10-Year DCF (EBITDA) | 35.07 | -44.9% |
Is ULS Technology PLC (ULS.L) a buy or a sell? ULS Technology PLC is definitely a sell. Based on our DCF analysis, ULS Technology PLC (ULS.L) appears to be overvalued with upside potential of -48.6%. 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 $63.70.