The Discounted Cash Flow (DCF) valuation of Serica Energy PLC (SQZ.L) is 642.59 GBP. With the latest stock price at 164.40 GBP, the upside of Serica Energy PLC based on DCF is 290.9%.

Is SQZ.L a buy or a sell?

Based on the latest price of 164.40 GBP and our DCF valuation, Serica Energy PLC (SQZ.L) is a buy. Buying SQZ.L stocks now will result in a potential gain of 290.9%.

	Range	Selected
WACC / Discount Rate	8.6% - 11.1%	9.8%
Long-term Growth Rate	0.0% - 1.0%	0.5%
Fair Price	545.8 - 782.63	642.59
Upside	232.0% - 376.1%	290.9%

164.40 GBP

Stock Price

642.59 GBP

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

SQZ.L DCF Valuation: Revenue & Expenses Forecast

(GBP in millions)		Projections

	12-2024	12-2025	12-2026	12-2027	12-2028	12-2029

Revenue	727	865	882	1,178	1,343	1,487
% Growth	15%	19%	2%	34%	14%	11%

Cost of goods sold	(504)	(599)	(611)	(816)	(931)	(1,031)
% of Revenue	69%	69%	69%	69%	69%	69%

Selling, G&A expenses	(24)	(29)	(29)	(39)	(45)	(50)
% of Revenue	3%	3%	3%	3%	3%	3%

Research & Development	(2)	(2)	(2)	(3)	(3)	(3)
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	(37)	(44)	(45)	(60)	(68)	(75)
% of Revenue	5%	5%	5%	5%	5%	5%

Tax expense	(68)	(36)	(37)	(49)	(56)	(62)
Tax rate	42%	19%	19%	19%	19%	19%

Net profit	92	155	158	211	240	266
% Margin	13%	18%	18%	18%	18%	18%