Canaan Inc.
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$0.38
Market Price
$0.33
Undervalued By
12.5%
Method: 10-year explicit-path FCF DCF reflecting the bitcoin-mining-hardware cycle: cash flow of -$40M (yr1, cyclical trough) recovering to $30-70M by yrs3-10 as mining-hardware demand tracks bitcoin price and network difficulty cycles; 15% discount rate; 2% terminal growth; $2.4M net debt; 747.15M shares outstanding.
Reasoning: Canaan's revenue and profitability are highly cyclical, tied to bitcoin price and mining economics, so I modeled an explicit recovery path from the current loss-making trough rather than extrapolating either the depressed TTM figures or a boom-period peak; the high discount rate reflects crypto-market cyclicality and customer concentration.