Advanced Energy Industries, Inc.

AI-generated fair value estimate for this company.

Method: 10-year FCF DCF off $2.04B TTM revenue (Q2'26 print, guiding low-mid 30% FY26 growth): revenue growth tapers from ~25% (yr1) to ~6% (yr10, implied 10-yr rev CAGR ~13%); FCF margin ramps from ~8% (yr1, reflecting currently depressed TTM FCF margin of 4.25%) to a steady-state 15% by yr5-10 as capex intensity normalizes; 10% discount rate; 3% terminal growth; ~$20M net cash; 40.05M shares outstanding. PV of explicit FCFs ~$3.71B + PV terminal value ~$5.91B + net cash = equity value.

Reasoning: AEIS's trailing FCF is temporarily depressed by a real capacity-expansion capex cycle tied to AI/datacenter power demand, so a normalized multi-year DCF that lets margins recover captures underlying earning power better than trailing FCF yield or the current elevated P/FCF multiple; result (~$241) is below the $279.43 market price and well below the $429 analyst consensus target.