As of May 27, 2025, Wall Financial Corp has a Discounted Cash Flow (DCF) derived fair value of $38.53 per share. With the current market price at $14.23, this represents a potential upside of 170.8%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $29.22 |
| DCF Fair Value (10-year) | $38.53 |
| Potential Upside (5-year) | 105.3% |
| Potential Upside (10-year) | 170.8% |
| Discount Rate (WACC) | 5.5% - 8.1% |
Revenue is projected to grow from $205 million in 01-2025 to $338 million by 01-2035, representing a compound annual growth rate of approximately 5.1%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 01-2025 | 205 | 32% |
| 01-2026 | 215 | 5% |
| 01-2027 | 223 | 4% |
| 01-2028 | 232 | 4% |
| 01-2029 | 239 | 3% |
| 01-2030 | 247 | 4% |
| 01-2031 | 259 | 5% |
| 01-2032 | 284 | 10% |
| 01-2033 | 297 | 4% |
| 01-2034 | 318 | 7% |
| 01-2035 | 338 | 6% |
Net profit margin is expected to improve from 13% in 01-2025 to 13% by 01-2035, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 01-2025 | 27 | 13% |
| 01-2026 | 29 | 13% |
| 01-2027 | 30 | 13% |
| 01-2028 | 31 | 13% |
| 01-2029 | 32 | 13% |
| 01-2030 | 33 | 13% |
| 01-2031 | 34 | 13% |
| 01-2032 | 38 | 13% |
| 01-2033 | 39 | 13% |
| 01-2034 | 42 | 13% |
| 01-2035 | 45 | 13% |
with a 5-year average of $2 million. Projected CapEx is expected to maintain at approximately 1% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 01-2026 | 2 |
| 01-2027 | 2 |
| 01-2028 | 3 |
| 01-2029 | 2 |
| 01-2030 | 3 |
| 01-2031 | 3 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 20 |
| Days Inventory | 161 |
| Days Payables | 0 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2026 | 104 | 9 | 2 | 27 | 66 |
| 2027 | 109 | 10 | 2 | 1 | 96 |
| 2028 | 113 | 10 | 3 | (6) | 106 |
| 2029 | 116 | 10 | 3 | 7 | 95 |
| 2030 | 120 | 11 | 3 | 1 | 106 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 29.22 | 105.3% |
| 10-Year DCF (Growth) | 38.53 | 170.8% |
| 5-Year DCF (EBITDA) | 16.48 | 15.8% |
| 10-Year DCF (EBITDA) | 27.17 | 90.9% |
Is Wall Financial Corp (WFC.TO) a buy or a sell? Wall Financial Corp is definitely a buy. Based on our DCF analysis, Wall Financial Corp (WFC.TO) appears to be significantly undervalued with upside potential of 170.8%. 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 a strong buy at the current market price of $14.23.