CEVA, Inc.

AI-generated fair value estimate for this company.

Method: 10-year DCF with margin ramp: $115.7M TTM revenue base; 12% annual revenue growth years 1-5 (ramping royalties from AI/edge, automotive and IoT design wins) and 8% years 6-10; unlevered FCF margin ramping from ~5% in year 1 to 20% by year 5 (reflecting licensing operating leverage as the business scales past recent negative-FCF royalty-mix headwinds) and holding at 22% in years 6-10; 10% discount rate (small-cap semiconductor-IP risk); 3% terminal growth; $206.0M net cash (cash & short-term investments $220.7M less $14.8M debt/lease liabilities); 28.15M shares outstanding.

Reasoning: CEVA's near-term free cash flow has been volatile and recently negative due to a shift in royalty mix, but it is a licensing business with high structural operating leverage once scaled, so a multi-year DCF that models margin normalization toward management's long-term framework is more informative than capitalizing the current depressed FCF; the large net cash position and lack of debt also materially support the per-share value.