Air T, Inc.

AI-generated fair value estimate for this company.

Method: 10-year DCF with an explicit 5-year recovery ramp in free cash flow ($5M, $15M, $22M, $28M, $34M) as recent debt-funded acquisitions (Regional Express Holdings, Crestone Air Partners/Arena Aviation Capital) integrate, then 5% annual growth years 6-10; 12% discount rate; 2.5% terminal growth; $247M net debt; 2.68M diluted shares.

Reasoning: Air T's TTM free cash flow is sharply negative (about -$64M) due to acquisition-related capex, and leverage has risen fast (about $247M net debt against an approximately $85M market cap), so I modeled an explicit integration/recovery path toward a modest steady-state FCF margin (roughly 9% of current revenue) rather than compounding from the currently negative base, and used an elevated 12% discount rate to reflect the small-cap size, thin analyst coverage, and leverage/execution risk.