Air Industries Group

AI-generated fair value estimate for this company.

Method: 5-year unlevered FCF DCF with FCF of 0, 1.5, 2.5, 3.2, 4.0 million discounted at 16%, 2% terminal growth, yields enterprise value of about 20.3M which is more than fully offset by net debt of 27.69M (31.91M total debt minus 4.22M cash), producing a near-zero to negative fundamental equity value on 4.85M shares. A small residual value of 0.30 per share is assigned to reflect limited-liability call-option value tied to the pending Tenax Aerospace merger and defense-spending tailwinds rather than standalone DCF economics.

Reasoning: Air Industries is a small, heavily-levered defense/aerospace precision-parts supplier with declining revenue (47.92M FY2025 vs 55.11M FY2024) negative and worsening free cash flow and debt of over 30M against a market cap of only 13M so pure fundamentals imply the equity is essentially underwater and current price reflects merger and turnaround optionality.