Trees Corporation

AI-generated fair value estimate for this company.

Method: 10-year levered (to-equity) FCF DCF: FCF of -$0.3M in year 1 improving linearly to $0.6M by year 5 as cost cuts offset revenue decline; 2% annual growth years 6-10; 22% discount rate reflecting high leverage/going-concern risk; 2% terminal growth; no separate net-debt deduction since FCF is already post-interest; 115.09M shares outstanding.

Reasoning: Trees Corp (cannabis retail/cultivation) has declining revenue (TTM $14.5M vs $18.1M in FY2023), negative operating cash flow, and $17.9M of debt against $1.0M cash, so equity value is best captured via a levered free-cash-flow-to-equity DCF with a high discount rate reflecting its distressed, highly-levered balance sheet rather than an enterprise-value multiple.