The Discounted Cash Flow (DCF) valuation of NRW Holdings Ltd (NWH.AX) is 2.48 AUD. With the latest stock price at 3.01 AUD, the upside of NRW Holdings Ltd based on DCF is -17.6%.

Is NWH.AX a buy or a sell?

Based on the latest price of 3.01 AUD and our DCF valuation, NRW Holdings Ltd (NWH.AX) is a sell. Selling NWH.AX stocks now will result in a potential gain of 17.6%.

	Range	Selected
WACC / Discount Rate	6.3% - 9.4%	7.9%
Long-term Growth Rate	1.0% - 3.0%	2.0%
Fair Price	1.7 - 4.48	2.48
Upside	-43.7% - 48.9%	-17.6%

3.01 AUD

Stock Price

2.48 AUD

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

NWH.AX DCF Valuation: Revenue & Expenses Forecast

(AUD in millions)		Projections

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

Revenue	2,913	3,327	3,569	3,837	4,202	4,458
% Growth	9%	14%	7%	8%	10%	6%

Cost of goods sold	(1,275)	(1,457)	(1,562)	(1,680)	(1,840)	(1,952)
% of Revenue	44%	44%	44%	44%	44%	44%

Selling, G&A expenses	(1,277)	(1,458)	(1,564)	(1,682)	(1,842)	(1,954)
% of Revenue	44%	44%	44%	44%	44%	44%

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

Net interest & other expenses	(218)	(249)	(267)	(287)	(315)	(334)
% of Revenue	7%	7%	7%	7%	7%	7%

Tax expense	(38)	(46)	(50)	(53)	(58)	(62)
Tax rate	26%	28%	28%	28%	28%	28%

Net profit	105	117	125	135	148	157
% Margin	4%	4%	4%	4%	4%	4%