The Discounted Cash Flow (DCF) valuation of Rakon Ltd (RAK.NZ) is (0.87) NZD. With the latest stock price at 0.70 NZD, the upside of Rakon Ltd based on DCF is -224.2%.
Based on the latest price of 0.70 NZD and our DCF valuation, Rakon Ltd (RAK.NZ) is a sell. Selling RAK.NZ stocks now will result in a potential gain of 224.2%.
Note: valuation result may not be accurate due to the low predictability of business.
Range | Selected | |
WACC / Discount Rate | 6.7% - 9.8% | 8.3% |
Long-term Growth Rate | 3.0% - 5.0% | 4.0% |
Fair Price | (1.99) - (0.58) | (0.87) |
Upside | -383.9% - -182.8% | -224.2% |
(NZD in millions) | Projections | |||||
03-2025 | 03-2026 | 03-2027 | 03-2028 | 03-2029 | 03-2030 | |
Revenue | 104 | 111 | 136 | 163 | 174 | 187 |
% Growth | 19% | 7% | 23% | 19% | 7% | 8% |
Cost of goods sold | (59) | (60) | (70) | (79) | (81) | (83) |
% of Revenue | 57% | 54% | 51% | 49% | 46% | 44% |
Selling, G&A expenses | (43) | (46) | (57) | (68) | (73) | (78) |
% of Revenue | 42% | 42% | 42% | 42% | 42% | 42% |
Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
% of Revenue | 0% | 0% | 0% | 0% | 0% | 0% |
Net interest & other expenses | (8) | (9) | (11) | (13) | (14) | (15) |
% of Revenue | 8% | 8% | 8% | 8% | 8% | 8% |
Tax expense | 1 | 1 | 0 | (0) | (1) | (2) |
Tax rate | -18% | 21% | 21% | 21% | 21% | 21% |
Net profit | (6) | (4) | (1) | 2 | 5 | 9 |
% Margin | -6% | -3% | -1% | 1% | 3% | 5% |