The Discounted Cash Flow (DCF) valuation of Codan Ltd (CDA.AX) is 11.03 AUD. With the latest stock price at 16.98 AUD, the upside of Codan Ltd based on DCF is -35%.

Is CDA.AX a buy or a sell?

Based on the latest price of 16.98 AUD and our DCF valuation, Codan Ltd (CDA.AX) is a sell. Selling CDA.AX stocks now will result in a potential gain of 35%.

	Range	Selected
WACC / Discount Rate	8.7% - 12.2%	10.4%
Long-term Growth Rate	2.5% - 4.5%	3.5%
Fair Price	7.82 - 18.49	11.03
Upside	-54.0% - 8.9%	-35.0%

16.98 AUD

Stock Price

11.03 AUD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

CDA.AX DCF Valuation: Revenue & Expenses Forecast

(AUD in millions)		Projections

	06-2024	06-2025	06-2026	06-2027	06-2028	06-2029

Revenue	550	651	742	813	950	1,084
% Growth	21%	18%	14%	10%	17%	14%

Cost of goods sold	(245)	(276)	(298)	(310)	(345)	(374)
% of Revenue	45%	42%	40%	38%	36%	34%

Selling, G&A expenses	(155)	(183)	(209)	(229)	(267)	(305)
% of Revenue	28%	28%	28%	28%	28%	28%

Research & Development	(36)	(43)	(48)	(53)	(62)	(71)
% of Revenue	7%	7%	7%	7%	7%	7%

Net interest & other expenses	(10)	(12)	(13)	(15)	(17)	(20)
% of Revenue	2%	2%	2%	2%	2%	2%

Tax expense	(23)	(36)	(45)	(53)	(67)	(82)
Tax rate	22%	26%	26%	26%	26%	26%

Net profit	81	102	128	153	192	233
% Margin	15%	16%	17%	19%	20%	22%