The Discounted Cash Flow (DCF) valuation of Redishred Capital Corp (Pre-Merger) (KUT.V) is 6.36 CAD. With the latest stock price at 4.96 CAD, the upside of Redishred Capital Corp (Pre-Merger) based on DCF is 28.2%.

Is KUT.V a buy or a sell?

Based on the latest price of 4.96 CAD and our DCF valuation, Redishred Capital Corp (Pre-Merger) (KUT.V) is a buy. Buying KUT.V stocks now will result in a potential gain of 28.2%.

	Range	Selected
WACC / Discount Rate	5.0% - 9.1%	7.0%
Long-term Growth Rate	2.5% - 4.5%	3.5%
Fair Price	2.6 - 56.19	6.36
Upside	-47.6% - 1032.8%	28.2%

4.96 CAD

Stock Price

6.36 CAD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

KUT.V DCF Valuation: Revenue & Expenses Forecast

(CAD in millions)		Projections

	12-2023	12-2024	12-2025	12-2026	12-2027	12-2028

Revenue	66	71	76	84	93	102
% Growth	15%	7%	7%	11%	11%	10%

Cost of goods sold	(41)	(43)	(45)	(49)	(53)	(57)
% of Revenue	62%	60%	59%	58%	57%	56%

Selling, G&A expenses	(9)	(10)	(10)	(12)	(13)	(14)
% of Revenue	14%	14%	14%	14%	14%	14%

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

Net interest & other expenses	(16)	(17)	(18)	(20)	(22)	(24)
% of Revenue	24%	24%	24%	24%	24%	24%

Tax expense	(1)	(0)	(1)	(1)	(1)	(2)
Tax rate	217%	27%	27%	27%	27%	27%

Net profit	(1)	1	2	3	4	5
% Margin	-1%	1%	2%	3%	4%	5%