Acorn Energy, Inc.

ACFN ·Industrials, Consulting Services, United States
Valuation › AI Valuation

AI Valuation

AI-generated fair value estimate for this company.

AI Fair Value $15.01
Market Price $19.91
Overvalued By 32.6%

Method: 5-year FCF DCF plus balance-sheet net cash: TTM FCF of $1.84M grown 15% per year for 5 years fading to 3% terminal growth, discounted at 12%; PV of explicit FCF ($9.97M) plus PV of terminal value ($24.03M) = $33.99M operating value, plus net cash of $3.69M (cash $4.48M minus debt/lease liabilities $0.79M) = $37.68M total equity value divided by 2.51M shares outstanding.

Reasoning: Acorn Energy's OmniMetrix remote-monitoring business for backup generators and cathodic protection is a small but genuinely operating, cash-generative niche business with a recent, rapid but still-short track record of FCF growth (FCF rose from approximately $0 in FY2023 to $2.06M in FY2025); a growth-fading DCF with an elevated discount rate for small-cap/execution risk, plus its modest net cash cushion, is the appropriate rigorous method; the resulting value versus the current approximately $21.91 price implies the market is pricing in more durable growth than the short history yet supports.