AFC Energy PLC (AIM:AFC, OTC:AFGYF) has impressed analysts at Peel Hunt with the speed it has assembled a new, highly experienced management team.
Karl Bostock was confirmed as the clean energy and fuel cell group's new chief financial officer today, as it gears up towards the next phase of its commercial growth.
“In valuing AFC, we predominantly use a DCF approach to 2042E, with a terminal growth rate of 2%.
“Our WACC [cost of capital] of 13.6% is derived from a risk-free rate of 4.4%, market risk premium of 7.5% and a stock beta of 2.96.
“We maintain our ‘Buy’ recommendation and 70p target price.”
Shares today were 9p, down 2.7%.