XTPL Valuation: A DCF Approach and Peer Comparison
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Valuation
Our valuation of XTPL is based entirely on the discounted cash flow method. The comparative valuation is shown for presentation purposes only. In our opinion, it is difficult to find entities with similar business profiles and at a similar stage of development as XTPL. Taking into account our forecasts, we set a 12-month target price of PLN 216 per share, 33% above the current market valuation, which implies a Buy recommendation.
Peer valuation
In the peer valuation, we selected companies operating in the broad consumer electronics industry and in semiconductors industry. We note that none of the companies is at a similar stage of development as XTPL. All of the selected entities have a much larger scale of business than XTPL.
DCF valuation:
- 5-year forecast period
- Risk-free rate of 5.5% (10-year government bond yields)
- In the valuation, we take net debt at the end of 2023. In the valuation, we do not take into account the FCFF generated in 2023.
- FCFF growth after the forecast period 2.5% - Number of shares takes into account shares issued in 2Q23
