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CQS New City High Yield Fund Limited (NCYF) Fair Value & Analysis

Financial Services · GB · Market cap 347M GBX

CN CQS New City High Yield Fund Limited NCYF · LSE
Price£0.5190
Fair Value£0.4300
Upside-17.1%
Quality45/100
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Evidence: High Range £0.3300 – £0.5400

Fair value as of: Jun 26, 2026

From 15 valuation models · updated 7 days ago

Share price +2.0% over the past month.

Price vs Fair Value (12 months)

£0.5330 £0.4869 Fair Value £0.4300 Jul 2025 Jul 2026

12‑month range £0.4869 – £0.5330 · fair‑value band £0.3300 – £0.5400 · the £0.5190 price screens above the £0.4300 fair value. As of Jun 26, 2026.

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Analysis

CQS New City High Yield Fund Limited (NCYF) currently trades at £0.5190, while our model-based Fair Value estimate is £0.4300 — implying the stock looks roughly 17.1% overvalued today. We read business quality at 45/100 (below-average quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium — the entry price still matters most (evidence: high).

Over the trailing twelve months, CQS New City High Yield Fund Limited generated revenue of £27.4M at a net margin of 78.9%. Revenue grew 34.4% year over year. It earns a return on equity of 7.2%. Net debt stands at £29.9M. Fundamentals as of Jun 26, 2026

Key figures & financial health

Revenue (TTM) 27.4M GBX
Revenue growth (YoY) +34.4%
Net margin 78.9%
Return on equity 7.2%
Free cash flow −12.9M GBX FY2025
P/E ratio 16.9
More key figures
Operating margin 88.3%
EPS (TTM) £0.0300
Dividend yield 8.9%
EPS growth (YoY) +28.9%
Net debt 29.9M GBX FY2025

Figures from reported company fundamentals (EODHD) · as of Jun 26, 2026. TTM = trailing twelve months.

About the company

CQS New City High Yield Fund Limited is a close ended fixed income mutual fund launched by CQS Asset Management Ltd. The fund is managed by CQS (UK) LLP. It invests in fixed income markets. The fund primarily invests in fixed income securities such as corporate and government bonds, loan stocks, and high yielding bonds. It uses a value approach to create its portfolio. The fund was formerly known as New City High Yield Fund Limited. CQS New City High Yield Fund Limited was formed in October 2004 and is domiciled in the Channel Islands.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

CQS New City High Yield Fund Limited reported revenue of £21.0M in FY2025 versus £9.6M in FY2021, a compound +21.8%/yr. Reported net income was £17.5M in FY2025, compounding −19.5%/yr from FY2021.

Revenue +21.8%/yr
FY21 £9.6M
FY22 £26.0M
FY23 £25.0M
FY24 £49.2M
FY25 £21.0M
Net income −19.5%/yr
FY21 £41.6M
FY22 £4.0M
FY23 £3.2M
FY24 £43.4M
FY25 £17.5M

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Frequently asked questions

Is CQS New City High Yield Fund Limited (NCYF) undervalued?
As of Jun 26, 2026, our model estimates a fair value of £0.4300 versus a price of £0.5190 — about −17% (overvalued). Model-based estimate, not financial advice.
What is the fair value of NCYF?
Our model-based fair value for CQS New City High Yield Fund Limited is £0.4300 (as of Jun 26, 2026), built from audited fundamentals. The current price is £0.5190.
What is the quality score of NCYF?
CQS New City High Yield Fund Limited has a Quality Score of 45/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of CQS New City High Yield Fund Limited (NCYF)?
CQS New City High Yield Fund Limited reported trailing-twelve-month revenue of about £27.4M (latest available figure, as of Jun 26, 2026).
What is the net profit margin of NCYF?
The net profit margin of CQS New City High Yield Fund Limited is about 78.9%, meaning it keeps roughly 78.9% of revenue as net income. Based on the latest reported figures.
Does CQS New City High Yield Fund Limited pay a dividend?
CQS New City High Yield Fund Limited currently shows a dividend yield of about 8.86% relative to its recent price (as of Jun 26, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.