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DCF Valuation
Base-case fair value
$18.24
Intrinsic $24.32 · 25% MOS
Current price: $32.48
Base-case summary
Our base-case DCF for Eton Pharmaceuticals, Inc. (ETON) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 34.0% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $15M in trailing free cash flow, this produces an intrinsic value of $24.32 per share. A 25% safety margin gives a fair value of $18.24, suggesting the stock is currently 44% overvalued against the $32.48 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$15M
Cash & equivalents
$20M
Total debt
$31M
Shares outstanding
32M