Biomerica, Inc.

BMRA ·Healthcare, Drug Manufacturers - General, United States
Valuation › AI Valuation

AI Valuation

AI-generated fair value estimate for this company.

AI Fair Value $0.86
Market Price $2.20
Overvalued By 155.8%

Method: 10-year unlevered FCF DCF using an explicit turnaround cash-flow path: -$2.0M, -$1.0M, $0.3M, $0.6M, $0.9M, $1.2M, $1.5M, $1.8M, $2.0M, $2.2M in years 1-10 (assuming new gastrointestinal/inflammatory diagnostic products stabilize the currently loss-making business); 16% discount rate (micro-cap, negative current FCF, execution risk); 3% terminal growth; -$1.07M net debt; 4.59M shares outstanding.

Reasoning: Biomerica is a real, revenue-generating in-vitro diagnostics company but is currently unprofitable with negative free cash flow, so the DCF models an explicit path toward breakeven and modest profitability from new product launches rather than a simple growth-rate formula, with a high discount rate reflecting genuine micro-cap execution risk.