Aehr Test Systems, Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: revenue base FY2026 $50M; FY2027 (yr1) $140M (midpoint of $130-150M mgmt guidance, ~180% growth on AI/SiC test demand), growth fading 40% to 30% to 25% to 20% yrs2-5, then 15% to 8% yrs6-10; FCF margin ramps from 5% (yr1) to a normalized 20% by yr5, held flat yrs6-10 (semi capital-equipment peer economics); 12% discount rate; 3% terminal growth; PV explicit FCF ~$348M + PV terminal value ~$478M = EV ~$827M; plus net cash $106.5M = equity value ~$933M; divided by 32.62M shares.

Reasoning: AEHR is a small, single-niche semi test-equipment name riding an AI/silicon-carbide demand spike (guided ~180% FY27 revenue growth) with currently negative FCF, so the DCF fades explosive near-term guidance into a sustainable operating-leverage margin rather than extrapolating it; the model's $28.60/share intrinsic value sits far below the $100.60 market price, meaning the stock currently prices in a much longer/steeper hypergrowth path than this base case.