| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 176.00 | -95 |
| Intrinsic value (DCF) | 597.60 | -82 |
| Graham-Dodd Method | 39.50 | -99 |
| Graham Formula | n/a |
Georgia Capital PLC (LSE: CGEO) is a diversified investment firm focused on private equity and venture capital opportunities in Georgia. Established in 2018 and headquartered in Tbilisi with additional offices in London and Bristol, the company targets early-stage to mature businesses across high-growth sectors, including automotive retail, education, hospitality, healthcare, insurance, utilities, and renewable energy. Georgia Capital adopts a hands-on approach, often securing board positions in portfolio companies to drive value creation. The firm primarily exits investments through IPOs or trade sales within a 5–10 year horizon. With a market capitalization of approximately £708.75 million (as of latest data), Georgia Capital plays a pivotal role in Georgia’s emerging economy, leveraging local expertise and international capital markets access. Its diversified portfolio mitigates sector-specific risks while capitalizing on Georgia’s macroeconomic growth potential.
Georgia Capital offers exposure to Georgia’s high-growth economy through a diversified investment portfolio, reducing single-sector risk. The firm’s net income of GEL 362.27 million (FY 2024) and EPS of 9.35 GBp reflect strong profitability, supported by strategic stakes in resilient industries like utilities and healthcare. However, negative operating cash flow (-GEL 6.4 million) raises liquidity concerns, though zero debt mitigates balance sheet risk. The lack of dividends may deter income-focused investors. With a beta of 0.82, the stock exhibits lower volatility than broader markets, appealing to risk-averse investors seeking emerging market exposure. Long-term potential hinges on Georgia’s economic stability and the firm’s ability to monetize investments via exits.
Georgia Capital’s competitive edge lies in its exclusive focus on Georgia, combining local market expertise with London-listed transparency. Its conglomerate structure allows cross-sector capital allocation, unlike pure-play private equity firms. The firm’s active governance (board participation) differentiates it from passive funds, enabling operational influence. However, its niche geographic focus limits diversification outside Georgia, exposing it to regional political or economic shocks. Competitors with broader regional mandates (e.g., Eastern Europe/CIS-focused funds) may offer better risk dispersion. Georgia Capital’s zero-debt policy strengthens resilience but could constrain leveraged growth opportunities. The absence of dividends aligns with its reinvestment strategy but narrows its investor base. Its venture-stage investments face competition from local family offices and international development banks, which often provide non-dilutive financing.