Allot Ltd.

AI-generated fair value estimate for this company.

Method: 10-year two-stage unlevered FCF DCF: base FCF $16M/yr (normalized off FY2025 actual FCF of $15.5M and FY2026 revenue guidance of $115-118M), Years 1-5 FCF growth 15%/yr (SECaaS ARR grew ~69% YoY in 2025 vs a flat/declining legacy DPI business), Years 6-10 growth fades to 8%/yr, discount rate 11.5% (small-cap Israeli network-security tech), terminal growth 3%, plus net cash of $95.3M (cash + short-term investments of $102.2M less total debt of $6.9M); divided by 49.38M shares outstanding.

Reasoning: Allot is a profitable, FCF-generative network-intelligence/cybersecurity company (FY2025 operating cash flow $17.8M against only ~$2.3M capex) transitioning to a higher-growth, higher-margin SECaaS subscription model, so a standard multi-stage FCF DCF fits; the two-stage structure captures today's SECaaS-driven growth acceleration fading toward a more mature growth rate as the revenue mix shift completes.