As of May 27, 2025, W Resources PLC has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $2.65, this represents a potential upside of -3812.6%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -3814.3% |
| Potential Upside (10-year) | -3812.6% |
| Discount Rate (WACC) | 8.1% - 312.0% |
Revenue is projected to grow from $3 million in 12-2020 to $4 million by 12-2030, representing a compound annual growth rate of approximately 2.9%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2020 | 3 | 597% |
| 12-2021 | 3 | 7% |
| 12-2022 | 3 | 2% |
| 12-2023 | 3 | 3% |
| 12-2024 | 3 | 7% |
| 12-2025 | 3 | 3% |
| 12-2026 | 3 | 6% |
| 12-2027 | 3 | 6% |
| 12-2028 | 4 | 4% |
| 12-2029 | 4 | 5% |
| 12-2030 | 4 | 2% |
Net profit margin is expected to improve from -139% in 12-2020 to -91% by 12-2030, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2020 | (3) | -139% |
| 12-2021 | (3) | -108% |
| 12-2022 | (3) | -104% |
| 12-2023 | (3) | -101% |
| 12-2024 | (3) | -97% |
| 12-2025 | (3) | -94% |
| 12-2026 | (3) | -93% |
| 12-2027 | (3) | -93% |
| 12-2028 | (3) | -92% |
| 12-2029 | (3) | -92% |
| 12-2030 | (4) | -91% |
with a 5-year average of $10 million. Projected CapEx is expected to maintain at approximately 4114% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2021 | 32 |
| 12-2022 | 54 |
| 12-2023 | 72 |
| 12-2024 | 95 |
| 12-2025 | 119 |
| 12-2026 | 124 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 32 |
| Days Inventory | 303 |
| Days Payables | 4,752 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 6M/2021 | 12 | (0) | 55 | (13) | (29) |
| 2022 | 47 | (1) | 113 | 12 | (77) |
| 2023 | 65 | (1) | 117 | 1 | (52) |
| 2024 | 88 | (1) | 125 | (5) | (32) |
| 2025 | 112 | (1) | 129 | 3 | (19) |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -3814.3% |
| 10-Year DCF (Growth) | 0.00 | -3812.6% |
| 5-Year DCF (EBITDA) | 0.00 | -100.0% |
| 10-Year DCF (EBITDA) | 0.00 | -100.0% |
Is W Resources PLC (WRES.L) a buy or a sell? W Resources PLC is definitely a sell. Based on our DCF analysis, W Resources PLC (WRES.L) appears to be overvalued with upside potential of -3812.6%. 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 $2.65.