Cerus Corporation

CERS ·Healthcare, Medical Devices, United States
Valuation › AI Valuation

AI Valuation

AI-generated fair value estimate for this company.

AI Fair Value $3.58
Market Price $2.36
Undervalued By 34.1%

Method: 10-year unlevered FCF DCF with explicit revenue-and-margin ramp: revenue grows 14% down to 7% annually from a $221.55M TTM base, with FCF margin expanding from 2% to 17% as the INTERCEPT platelet/plasma business scales and the red-blood-cell treatment platform potentially reaches market (FCF path of roughly $5M to $107M over 10 years); 10.5% discount rate; 3% terminal growth; $69.51M net debt ($97.36M debt vs. $27.85M cash); 201.52M shares outstanding.

Reasoning: Cerus has an established, growing blood-safety product line (INTERCEPT) but inconsistent near-term FCF (recently negative due to R&D investment in its red-blood-cell platform), so I modeled cash generation off underlying revenue growth (+15.1% TTM) and a margin-ramp assumption that credits the platform's operating leverage potential rather than extrapolating the volatile recent FCF trend.