CLPS Incorporation

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $166.8M TTM revenue base growing 10%/yr for 5yrs then tapering 8%/7%/6%/5%/5% through Y10 to ~$359M; EBIT margin recovers linearly from roughly breakeven (FY2025 EBIT margin was -3.3%) to 6% by Y10 as SG&A leverage improves; 25% tax rate; 12% discount rate reflecting China-based small-cap ADR risk; 3% terminal growth; ~$0.5M net cash added; 29.84M shares outstanding.

Reasoning: CLPS has real, substantial recurring IT-outsourcing/banking-technology revenue (FY2025 $164.5M) and a long operating history, so a standard FCF DCF is appropriate; the margin-recovery assumption is conservative versus the 5-6% operating margins achieved in FY2021-2022 before recent SG&A-driven losses, and the discount rate reflects elevated China-ADR, regulatory, and currency risk.