As of May 22, 2025, UIL Ltd has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $115.50, this represents a potential upside of -552.8%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -569.2% |
| Potential Upside (10-year) | -552.8% |
| Discount Rate (WACC) | 7.1% - 9.6% |
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 06-2024 | (16) | 52% |
| 06-2025 | (17) | 5% |
| 06-2026 | (17) | 2% |
| 06-2027 | (18) | 2% |
| 06-2028 | (18) | 2% |
| 06-2029 | (18) | 2% |
| 06-2030 | (19) | 5% |
| 06-2031 | (20) | 2% |
| 06-2032 | (20) | 2% |
| 06-2033 | (21) | 5% |
| 06-2034 | (22) | 2% |
Net profit margin is expected to improve from 155% in 06-2024 to -2485% by 06-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 06-2024 | (25) | 155% |
| 06-2025 | (21) | -2102% |
| 06-2026 | (21) | -2110% |
| 06-2027 | (21) | -2120% |
| 06-2028 | (21) | -2131% |
| 06-2029 | (21) | -2143% |
| 06-2030 | (23) | -2254% |
| 06-2031 | (23) | -2292% |
| 06-2032 | (23) | -2332% |
| 06-2033 | (24) | -2442% |
| 06-2034 | (25) | -2485% |
with a 5-year average of $0 million. Projected CapEx is expected to maintain at approximately 0% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 06-2025 | 0 |
| 06-2026 | 0 |
| 06-2027 | 0 |
| 06-2028 | 0 |
| 06-2029 | 0 |
| 06-2030 | 0 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | (2) |
| Days Inventory | 0 |
| Days Payables | 0 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 6M/2025 | (13) | (2) | (0) | (0) | (10) |
| 2026 | (26) | (5) | (0) | 0 | (21) |
| 2027 | (26) | (5) | (0) | 0 | (21) |
| 2028 | (26) | (5) | (0) | (0) | (21) |
| 2029 | (26) | (5) | (0) | 0 | (21) |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -569.2% |
| 10-Year DCF (Growth) | 0.00 | -552.8% |
| 5-Year DCF (EBITDA) | 0.00 | -100.0% |
| 10-Year DCF (EBITDA) | 0.00 | -100.0% |
Is UIL Ltd (UTL.L) a buy or a sell? UIL Ltd is definitely a sell. Based on our DCF analysis, UIL Ltd (UTL.L) appears to be overvalued with upside potential of -552.8%. 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 $115.50.