ATA Creativity Global

AACG ·Consumer Defensive, Education & Training Services, China
Valuation › AI Valuation

AI Valuation

AI-generated fair value estimate for this company.

AI Fair Value $0.34
Market Price $0.78
Overvalued By 129.4%

Method: 10-year explicit-path FCF DCF starting from a loss-making base: -$2M yr1, breakeven yr2, recovering to $3M (about 8% of revenue) by yr5, then 2% growth through yr10; 13% discount rate; 2% terminal growth; -$5.6M net cash; 67.96M shares outstanding.

Reasoning: AACG is a small, currently unprofitable Chinese education-services ADR with declining revenue, so I modeled an explicit margin-recovery path toward its historical operating margin rather than applying growth to a negative base; the high discount rate reflects small-cap, China-ADR and going-concern-adjacent risk.