Benchmark Electronics, Inc.

AI-generated fair value estimate for this company.

Method: Unlevered 10-year FCF DCF: base LTM free cash flow $126.98M (on $2.82B revenue, 35.92M shares, net cash $23.0M); FCF grown 8%/yr years 1-5 (in line with raised FY2026 revenue guidance of 9-10% on AI/semi-cap demand) then 4%/yr years 6-10 as the AI capex cycle normalizes; discounted at WACC 9.0%; terminal growth 3.0% gives terminal value of Y10 FCF ($227.0M) x 1.03/(0.09-0.03) = $3,897M; sum of discounted interim FCFs (~$1,145M) + discounted terminal value (~$1,646M) = enterprise value ~$2,792M; adding net cash $23M and dividing by 35.92M shares = $78.40/share.

Reasoning: BHE is a standard contract electronics manufacturer with real, measurable unlevered free cash flow and no unusual capital structure, so a conventional multi-stage FCF DCF anchored to its own guided growth (raised 2026 outlook to 9-10% revenue growth on AI/semiconductor-capital-equipment demand) is the most appropriate valuation method.