Clarus Corporation

AI-generated fair value estimate for this company.

Method: 10-year two-stage FCF DCF off TTM revenue of $252.85M (price $3.58, market cap $137.1M, 38.29M shares, net cash $29.8M, zero debt, as of late Sep 2026); revenue growth assumed at 2%/yr for years 1-5 then 3%/yr for years 6-10; unlevered FCF margin ramping from ~1.5% (reflecting the current weak TTM FCF of -$0.4M/$4.4M range seen 2024-2026) up to a normalized 6% by year 5 (below the 9.8% margin achieved in FY2023 when FCF was $26.2M) and held flat through year 10; WACC 10%; terminal growth 2.5%; net cash of $29.8M added to the PV of FCFs and terminal value, divided by 38.29M diluted shares.

Reasoning: Clarus (Black Diamond, Rhino-Rack, PIEPS) is a debt-free but currently loss-making/FCF-negative outdoor-equipment holding company working through a multi-year demand downturn (FY2025 revenue -5.25% YoY, net loss -$46.6M), so a recovery-path FCF DCF anchored to a normalization of margins toward (but below) its FY2023 level, combined with its net-cash cushion, is more appropriate than a P/E multiple on currently negative/near-breakeven earnings.