As of May 25, 2025, Slack Technologies Inc has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $45.20, this represents a potential upside of -270.7%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -191.2% |
| Potential Upside (10-year) | -270.7% |
| Discount Rate (WACC) | 7.0% - 9.3% |
Revenue is projected to grow from $903 million in 01-2021 to $9941 million by 01-2031, representing a compound annual growth rate of approximately 27.1%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 01-2021 | 903 | 43% |
| 01-2022 | 1223 | 36% |
| 01-2023 | 1710 | 40% |
| 01-2024 | 2373 | 39% |
| 01-2025 | 3091 | 30% |
| 01-2026 | 3841 | 24% |
| 01-2027 | 4808 | 25% |
| 01-2028 | 5934 | 23% |
| 01-2029 | 7238 | 22% |
| 01-2030 | 8489 | 17% |
| 01-2031 | 9941 | 17% |
Net profit margin is expected to improve from -32% in 01-2021 to -29% by 01-2031, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 01-2021 | (292) | -32% |
| 01-2022 | (388) | -32% |
| 01-2023 | (532) | -31% |
| 01-2024 | (723) | -30% |
| 01-2025 | (924) | -30% |
| 01-2026 | (1,127) | -29% |
| 01-2027 | (1,406) | -29% |
| 01-2028 | (1,729) | -29% |
| 01-2029 | (2,102) | -29% |
| 01-2030 | (2,457) | -29% |
| 01-2031 | (2,867) | -29% |
with a 5-year average of $34 million. Projected CapEx is expected to maintain at approximately 12% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 01-2022 | 58 |
| 01-2023 | 93 |
| 01-2024 | 136 |
| 01-2025 | 198 |
| 01-2026 | 284 |
| 01-2027 | 368 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 87 |
| Days Inventory | 0 |
| Days Payables | 74 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 9M/2022 | (238) | (0) | 107 | 26 | (371) |
| 2023 | (421) | (1) | 199 | 125 | (744) |
| 2024 | (562) | (1) | 276 | 162 | (999) |
| 2025 | (695) | (1) | 359 | 147 | (1,200) |
| 2026 | (803) | (2) | 446 | 183 | (1,431) |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -191.2% |
| 10-Year DCF (Growth) | 0.00 | -270.7% |
| 5-Year DCF (EBITDA) | 0.00 | -100.0% |
| 10-Year DCF (EBITDA) | 0.00 | -100.0% |
Is Slack Technologies Inc (WORK) a buy or a sell? Slack Technologies Inc is definitely a sell. Based on our DCF analysis, Slack Technologies Inc (WORK) appears to be overvalued with upside potential of -270.7%. 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 $45.20.