SThree PLC
LSE:STEM

Watchlist Manager
SThree PLC Logo
SThree PLC
LSE:STEM
Watchlist
Price: 240.5 GBX 2.78%
Market Cap: 312.7m GBX

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Apr 23, 2025.

Estimated DCF Value of one STEM stock is 305.39 GBX. Compared to the current market price of 240.5 GBX, the stock is Undervalued by 21%.

STEM DCF Value
Base Case
305.39 GBX
Undervaluation 21%
DCF Value
Price
Worst Case
Base Case
Best Case
DCF Value: 305.39 GBX

Present Value Calculation

This block is the starting point of the DCF valuation process. It calculates the present value of a company's forecasted cash flows based on selected operating model. Adjust key parameters like discount rate and terminal growth, and alter inputs such as revenue growth and margins to see their impact on valuation.

DCF Model
Base Case Scenario

The present value of cash flows over the next 5 years amounts to 99.1m GBP. The present value of the terminal value is 257.7m GBP. The total present value equals 356.7m GBP.
Forecast Period
Years
Discount Rate
%
Terminal Growth
%
Hide DCF Settings
Save

DCF Value Calculation

This stage translates the present value into DCF value per share. For firm valuation models, it adjusts present value for debt and assets to derive equity value (skipped if using equity valuation model). Finally, this equity value is divided by the number of shares to determine the DCF value per share.

Present Value to DCF Value
Capital Structure

Present Value 356.7m GBP
+ Cash & Equivalents 69.8m GBP
Firm Value 426.5m GBP
- Debt 29.5m GBP
Equity Value 397m GBP
/ Shares Outstanding 130m
Value per Share 3.05 GBP
GBP / GBX Exchange Rate 100
STEM DCF Value 305.39 GBX
Undervalued by 21%

Valuation Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Sensitivity Analysis assesses how changes in key factors like revenue growth, margin, and discount rate affect a stock's DCF value. By visualizing various scenarios, from significant downturns to optimistic growth, this tool helps you understand potential valuation shifts, aiding in risk assessment and strategic decision-making.

DCF Financials
Financials used in DCF Calculation

Revenue
1.3B 1.3B
Operating Income
58.9m 50.1m
FCFF
33m 29.5m

What is the DCF value of one STEM stock?

Estimated DCF Value of one STEM stock is 305.39 GBX. Compared to the current market price of 240.5 GBX, the stock is Undervalued by 21%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Utilizing the DCF operating model, SThree PLC's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at 356.7m GBP.

2. DCF Value Calculation. The company's capital structure is employed to derive the total Equity Value from the previously calculated Present Value of the cash flow. This Equity Value, when divided by the total number of outstanding shares, yields the DCF Value of 305.39 GBX per share.

Back to Top
//