Complete SCKT Stock Valuation Analysis
Comprehensive intrinsic value analysis using 2 different methodologies
SCKT DCF Analysis
SCKT (Socket Mobile, Inc.) discounted cash flow analysis with multiple scenarios, growth assumptions, and terminal value calculations
Financial Projections
| Metrics | 2022 (Historical) | 2023 (Historical) | 2024 (Historical) | 2025 (Projected) | 2026 (Projected) | 2027 (Projected) | 2028 (Projected) | 2029 (Projected) |
|---|---|---|---|---|---|---|---|---|
| Revenue | $21.2M | $17.0M | $18.8M | $19.0M | $19.2M | $19.4M | $19.6M | $19.7M |
| Revenue Growth % | - | -19.8% | 10.2% | 1.2% | 1.1% | 1.0% | 0.9% | 0.8% |
| EBIT | $-446.0K | $-3.1M | $-2.5M | $949.5K | $959.8K | $969.2K | $977.7K | $985.5K |
| EBIT Margin % | -2.1% | -18.3% | -13.1% | 5.0% | 5.0% | 5.0% | 5.0% | 5.0% |
| Tax Rate % | 25.0% | 25.0% | 25.0% | 20.0% | 20.5% | 21.0% | 21.5% | 22.0% |
| NOPAT | $-334.5K | $-2.3M | $-1.8M | $759.6K | $763.0K | $765.7K | $767.5K | $768.7K |
| NOPAT Margin % | -1.6% | -13.7% | -9.8% | 4.0% | 4.0% | 4.0% | 3.9% | 3.9% |
| Capex | $1.2M | $2.2M | $0 | $937.1K | $899.9K | $863.3K | $827.3K | $792.2K |
| Capex / Revenue % | 5.6% | 12.7% | 0.0% | 4.9% | 4.7% | 4.5% | 4.2% | 4.0% |
| Depreciation | $1.3M | $1.4M | $1.6M | $1.4M | $1.4M | $1.5M | $1.5M | $1.5M |
| D&A / Revenue % | 6.0% | 8.2% | 8.4% | 7.5% | 7.5% | 7.5% | 7.5% | 7.5% |
| Change in NWC | $-1.2M | $-3.6M | $-1.5M | $-859.4K | $-695.0K | $-561.5K | $-453.1K | $-365.4K |
| NWC Change / Revenue % | -5.6% | -21.1% | -7.9% | -4.5% | -3.6% | -2.9% | -2.3% | -1.9% |
| Unlevered FCF | $957.0K | $486.6K | $1.2M | $2.1M | $2.0M | $1.9M | $1.9M | $1.8M |
| UFCF % Chg. | - | -49.2% | 151.9% | 72.5% | -5.1% | -4.0% | -3.0% | -2.1% |
| FCF / Revenue % | 4.5% | 2.9% | 6.5% | 11.1% | 10.5% | 9.9% | 9.6% | 9.3% |
| Discount Factor | - | - | - | 0.933 | 0.871 | 0.813 | 0.759 | 0.708 |
| Present Value of FCF | - | - | - | $2.0M | $1.7M | $1.6M | $1.4M | $1.3M |
| Sum of PV of UFCF | - | - | - | $2.0M | $3.7M | $5.3M | $6.7M | $8.0M |
WACC Calculation
Weighted Average Cost of Capital used for discounting cash flows.
| WACC Calculation | Value |
|---|---|
| Cost of Debt | 6.9% |
| Tax Rate | 20.0% |
| After Tax Cost of Debt | 5.5% |
| Risk Free Rate | 4.40% |
| Market Risk Premium | 4.3% |
| Beta | 0.91 |
| Cost of Equity | 8.3% |
| Total Debt | $6.8M |
| Market Cap | $9.1M |
| Total Capital | $15.9M |
| Debt Weighting | 42.7% |
| Equity Weighting | 57.3% |
| WACC | 7.1% |
Terminal Value
Choose between perpetuity growth or exit multiple methods.
| Terminal Value Calculation | Value |
|---|---|
| Terminal Growth Rate | 2.5% |
| Final Year FCF | $1.8M |
| Terminal Value | $40.4M |
| PV of Terminal Value | $28.6M |
| Cumulative PV of UFCF | $8.0M |
| Net Debt | $4.3M |
| Equity Value | $32.3M |
| Shares Outstanding | 7.6M |
| Implied Share Price | $4 |
| Current Share Price | $1 |
| Implied Upside/(Downside) | +271.8% |
Valuation Summary
$4.28
Implied Price
$1.15
Current Price
+271.8%
Upside/Downside
7.1%
WACC
SCKT Peer Valuation Analysis
Relative valuation based on comparable company trading multiples
Peer Valuation Analysis
Fair Value Range Analysis
Based on median multiples from 7 peer companies in Technology
P/E Ratio
$-10.78
-1037.5%
Peer Median: 31.5x
EV/EBITDA
$0.00
-100.0%
Peer Median: 22.5x
P/S Ratio
$1.83
+58.9%
Peer Median: 0.8x
Interpretation: Each multiple provides a different perspective on fair value. Consider which multiple is most relevant for SCKT's business model and current situation.
Multiple Comparison
| Multiple | SCKT Current | Peer Median | Peer Average | Premium/Discount | Assessment |
|---|---|---|---|---|---|
| P/E Ratio | -3.4x | 31.5x | 31.5x | -110.7% | Undervalued |
| EV/EBITDA | Infinityx | 22.5x | 22.5x | Infinity% | Overvalued |
| P/S Ratio | 0.5x | 0.8x | 2.2x | -37.1% | Undervalued |
Peer Companies
Click any company to view their valuation
| Company | Market Cap | P/E Ratio | EV/EBITDA | P/S Ratio |
|---|---|---|---|---|
| $0.07B | 0.0x | 0.0x | 1.3x | |
| $0.04B | 0.0x | 0.0x | 0.8x | |
| $0.03B | 0.0x | 101.7x | 0.6x | |
| $0.01B | 0.0x | 0.0x | 0.5x | |
| $0.01B | 0.0x | 0.0x | 0.2x | |
| $0.00B | 0.0x | 0.0x | 4.3x | |
| $3040.91B | 31.5x | 22.5x | 7.6x |