Hostelworld Group PLC
LSE:HSW

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Hostelworld Group PLC Logo
Hostelworld Group PLC
LSE:HSW
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Price: 113 GBX 0.89% Market Closed
Market Cap: 142.8m GBX

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Aug 6, 2025.

Estimated DCF Value of one HSW stock is 170.03 GBX. Compared to the current market price of 113 GBX, the stock is Undervalued by 34%.

HSW DCF Value
Base Case
170.03 GBX
Undervaluation 34%
DCF Value
Price
Worst Case
Base Case
Best Case
DCF Value: 170.03 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 92.2m EUR. The present value of the terminal value is 148.9m EUR. The total present value equals 241.1m EUR.
Forecast Period
Years
Discount Rate
%
Terminal Growth
%
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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 241.1m EUR
+ Cash & Equivalents 11m EUR
Firm Value 252.1m EUR
- Debt 2.2m EUR
Equity Value 249.9m EUR
/ Shares Outstanding 126.3m
Value per Share 1.98 EUR
EUR / GBX Exchange Rate 85.9606
HSW DCF Value 170.03 GBX
Undervalued by 34%

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
105.3m 164.4m
Operating Income
15.8m 22.4m
FCFF
24m 17.4m

What is the DCF value of one HSW stock?

Estimated DCF Value of one HSW stock is 170.03 GBX. Compared to the current market price of 113 GBX, the stock is Undervalued by 34%.

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, Hostelworld Group PLC's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at 241.1m EUR.

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 170.03 GBX per share.

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