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DCF Valuation
Base-case fair value
$4.45
Intrinsic $5.93 · 25% MOS
Current price: $5.02
Base-case summary
Our base-case DCF for Sono Tek Corp (SOTK) projects 10 years of free cash flow growth at 8.7% for years 1–5 and 4.4% for years 6–10, anchored to 8.7% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $3M in trailing free cash flow, this produces an intrinsic value of $5.93 per share. A 25% safety margin gives a fair value of $4.45, suggesting the stock is currently 11% overvalued against the $5.02 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
$3M
Cash & equivalents
$15M
Total debt
$0
Shares outstanding
16M