Aytu BioPharma, Inc.
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$2.90
Market Price
$2.04
Undervalued By
29.7%
Method: 10-year unlevered FCF DCF: $1.7M normalized FCF base (TTM FCF of $1.64M); 10% annual FCF growth for years 1-5; 5% for years 6-10; 12% discount rate; 3% terminal growth; $3.78M net cash added; 10.73M shares outstanding.
Reasoning: Aytu is a small specialty pharma/consumer health company that, despite a large TTM GAAP net loss driven by non-cash items, is actually free-cash-flow positive, so its modest reported FCF is used as the base; a 12% discount rate reflects small-cap/specialty-pharma risk, with double-digit near-term growth from its commercial product portfolio tapering to a more mature rate.