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DCF Valuation
Base-case fair value
$5.72
Intrinsic $7.63 · 25% MOS
Current price: $2.20
Base-case summary
Our base-case DCF for Psychemedics Corp (PMDI) projects 10 years of free cash flow growth at 20.0% for years 1–5 and 10.0% for years 6–10, anchored to 39.5% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $878000 in trailing free cash flow, this produces an intrinsic value of $7.63 per share. A 25% safety margin gives a fair value of $5.72, suggesting the stock is currently 160% undervalued against the $2.20 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
$878000
Cash & equivalents
$1M
Total debt
$957000
Shares outstanding
6M