The Discounted Cash Flow (DCF) valuation of Qinetiq Group PLC (QQ.L) is (677.22) GBP. With the latest stock price at 488.80 GBP, the upside of Qinetiq Group PLC based on DCF is -238.5%.

Is QQ.L a buy or a sell?

Based on the latest price of 488.80 GBP and our DCF valuation, Qinetiq Group PLC (QQ.L) is a sell. Selling QQ.L stocks now will result in a potential gain of 238.5%.

Note: valuation result may not be accurate due to the company's negative earnings.

	Range	Selected
WACC / Discount Rate	7.2% - 10.3%	8.8%
Long-term Growth Rate	3.0% - 5.0%	4.0%
Fair Price	(1,353.82) - (469.99)	(677.22)
Upside	-377.0% - -196.2%	-238.5%

488.80 GBP

Stock Price

(677.22) GBP

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

QQ.L DCF Valuation: Revenue & Expenses Forecast

(GBP in millions)		Projections

	03-2025	03-2026	03-2027	03-2028	03-2029	03-2030

Revenue	1,932	2,088	2,238	2,584	2,935	3,281
% Growth	1%	8%	7%	15%	14%	12%

Cost of goods sold	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Selling, G&A expenses	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

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

Net interest & other expenses	(2,038)	(2,203)	(2,361)	(2,727)	(3,096)	(3,461)
% of Revenue	106%	106%	106%	106%	106%	106%

Tax expense	(79)	27	29	34	38	43
Tax rate	75%	24%	24%	24%	24%	24%

Net profit	(186)	(88)	(94)	(109)	(123)	(138)
% Margin	-10%	-4%	-4%	-4%	-4%	-4%