The Discounted Cash Flow (DCF) valuation of Damac Properties Dubai PJSC Co (DAMAC.DB) is 1.36 AED. With the latest stock price at 2.71 AED, the upside of Damac Properties Dubai PJSC Co based on DCF is -49.8%.

Is DAMAC.DB a buy or a sell?

Based on the latest price of 2.71 AED and our DCF valuation, Damac Properties Dubai PJSC Co (DAMAC.DB) is a sell. Selling DAMAC.DB stocks now will result in a potential gain of 49.8%.

	Range	Selected
WACC / Discount Rate	8.6% - 10.4%	9.5%
Long-term Growth Rate	3.0% - 5.0%	4.0%
Fair Price	0.91 - 2.28	1.36
Upside	-66.5% - -15.7%	-49.8%

2.71 AED

Stock Price

1.36 AED

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

DAMAC.DB DCF Valuation: Revenue & Expenses Forecast

(AED in millions)		Projections

	12-2021	12-2022	12-2023	12-2024	12-2025	12-2026

Revenue	2,967	5,028	5,315	5,734	6,025	6,598
% Growth	37%	69%	6%	8%	5%	10%

Cost of goods sold	(2,161)	(3,478)	(3,493)	(3,580)	(3,574)	(3,718)
% of Revenue	73%	69%	66%	62%	59%	56%

Selling, G&A expenses	(1,399)	(2,371)	(2,507)	(2,704)	(2,842)	(3,112)
% of Revenue	47%	47%	47%	47%	47%	47%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	111	187	198	214	225	246
% of Revenue	4%	4%	4%	4%	4%	4%

Tax expense	(48)	349	268	185	91	(8)
Tax rate	10%	55%	55%	55%	55%	55%

Net profit	(531)	(286)	(219)	(152)	(75)	6
% Margin	-18%	-6%	-4%	-3%	-1%	0%