As of May 22, 2025, Viq Solutions Inc has a Discounted Cash Flow (DCF) derived fair value of $0.81 per share. With the current market price at $0.26, this represents a potential upside of 215.9%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.81 |
| Potential Upside (5-year) | -299.9% |
| Potential Upside (10-year) | 215.9% |
| Discount Rate (WACC) | 6.6% - 10.0% |
Revenue is projected to grow from $43 million in 12-2024 to $73 million by 12-2034, representing a compound annual growth rate of approximately 5.4%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 43 | 5% |
| 12-2025 | 46 | 5% |
| 12-2026 | 47 | 3% |
| 12-2027 | 50 | 7% |
| 12-2028 | 53 | 6% |
| 12-2029 | 58 | 9% |
| 12-2030 | 61 | 5% |
| 12-2031 | 62 | 2% |
| 12-2032 | 65 | 6% |
| 12-2033 | 70 | 7% |
| 12-2034 | 73 | 4% |
Net profit margin is expected to improve from -16% in 12-2024 to -2% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | (7) | -16% |
| 12-2025 | (6) | -13% |
| 12-2026 | (5) | -10% |
| 12-2027 | (4) | -8% |
| 12-2028 | (3) | -6% |
| 12-2029 | (2) | -4% |
| 12-2030 | (2) | -3% |
| 12-2031 | (2) | -3% |
| 12-2032 | (2) | -2% |
| 12-2033 | (1) | -2% |
| 12-2034 | (1) | -2% |
with a 5-year average of $2 million. Projected CapEx is expected to maintain at approximately 6% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 2 |
| 12-2026 | 2 |
| 12-2027 | 2 |
| 12-2028 | 3 |
| 12-2029 | 3 |
| 12-2030 | 3 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 31 |
| Days Inventory | 0 |
| Days Payables | 0 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2025 | (0) | (0) | 3 | 1 | (4) |
| 2026 | 1 | (0) | 3 | (0) | (1) |
| 2027 | 2 | (0) | 3 | 0 | (1) |
| 2028 | 3 | (0) | 3 | 0 | 0 |
| 2029 | 5 | (0) | 3 | 0 | 2 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -299.9% |
| 10-Year DCF (Growth) | 0.81 | 215.9% |
| 5-Year DCF (EBITDA) | 0.18 | -32.6% |
| 10-Year DCF (EBITDA) | 0.81 | 212.1% |
Is Viq Solutions Inc (VQS.TO) a buy or a sell? Viq Solutions Inc is definitely a buy. Based on our DCF analysis, Viq Solutions Inc (VQS.TO) appears to be significantly undervalued with upside potential of 215.9%. 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 $0.26.