Capstone Holding Corp.

AI-generated fair value estimate for this company.

Method: EV/Revenue multiple approach (DCF not used due to negative/unstable FCF): $66.18M blended revenue base (average of TTM revenue $60.25M through June 2026 and FY2026 management guidance of $72.1M, +54% YoY); 0.5x EV/Revenue multiple applied (below the 0.8x-1.5x range of profitable specialty-contractor/roofing roll-up peers, discounted for going-concern risk); implied EV $33.09M; less net debt of $30.30M (total debt $30.53M vs cash $0.23M per the June 30, 2026 10-Q); equity value $2.79M; divided by 20.58M diluted shares outstanding.

Reasoning: Capstone is a small, fast-growing (acquisition-fueled) roofing/construction roll-up, but FY2025 operating cash flow was -$4.41M and TTM FCF is -$3.81M, net debt ($30.3M) dwarfs its $3.36M market cap, and the company disclosed substantial doubt about its ability to continue as a going concern plus a Nasdaq minimum-bid-price deficiency, so a standard FCF DCF is unreliable; a conservative revenue multiple net of debt better captures both the real top-line growth and the acute leverage/dilution risk.