C3.ai, Inc.

AI-generated fair value estimate for this company.

Method: 10-year two-stage unlevered FCF DCF. Base: FY2027 revenue guidance midpoint $225M. Years 1-5 revenue growth 8% to 10% with FCF margin ramping from 3% to 15%; years 6-10 growth tapering 9% to 5% with FCF margin ramping 16% to 20%. Resulting FCF path ($M): 7.3, 16.0, 26.5, 38.8, 53.4, 62.0, 71.2, 80.6, 90.2, 99.7. Discount rate 11%; terminal growth 3%. PV of explicit FCFs = $269.0M; terminal value PV = $452.1M; enterprise value ~= $721.0M. Add net cash of $591.6M (cash and ST investments $651.1M less debt $59.5M) -> equity value ~= $1,312.6M / 160.78M shares = $8.16/share.

Reasoning: C3.ai has a fortress net-cash balance sheet (about 34% of market cap) and just-inflecting FCF, so a DCF anchored on a realistic multi-year margin-ramp (rather than a naive extrapolation of the current unprofitable/declining state) is appropriate; it is a normal operating company with real, findable financials despite recent revenue declines.