Charlie's Holdings, Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $24.1M TTM revenue base; revenue growth decelerating from 32% in yr1 to 7% by yr10, consistent with its rapid recent growth in regulatory-compliant nicotine/vapor products (Metatine, SBX, Pacha, PACHAMAMA brands); EBIT margin improving from -6% currently to 12% by yr10 as the business scales past its current negative operating income; FCF assumed at 75% of after-tax EBIT (21% tax, light capex consumer-products model); 14% discount rate reflecting small-cap consumer/regulatory (FDA vapor-product) risk; 3% terminal growth; -$2.1M net debt ($0.64M cash less $2.73M debt); 280.55M shares outstanding.

Reasoning: Charlie's Holdings' reported TTM net income is positive mainly because of a one-time PMTA-related asset sale rather than recurring operations, which still run at a GAAP operating loss, so a DCF built on the recurring operating trend (ignoring the one-off gain) gives a more honest read of intrinsic value than the headline net-income figure or the current trading price.