Argan, Inc.

AI-generated fair value estimate for this company.

Method: 10-year FCF DCF: $160M normalized annual FCF; 18% growth years 1-3 (reflecting the current gas-power/EPC construction backlog boom tied to data-center electricity demand), 8% years 4-10; 10% discount rate; 3% terminal growth; $300M assumed net cash; 14.03M shares outstanding.

Reasoning: Argan's EPC power-plant construction business is asset-light with strong FCF conversion and is riding a multi-year surge in gas-turbine power-plant demand from data centers; above-trend near-term growth off its backlog is modeled before fading to a more sustainable long-term rate.