Coda Octopus Group, Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: FCF base $6.0M (FY2025 actual, OCF $7.2M minus capex $1.2M); 10% annual FCF growth years 1-5 (driven by the defense/sonar segment, +68% YoY last reported quarter); 5% years 6-10; 10% discount rate (micro-cap, thin trading, contract-timing risk); 3% terminal growth; net cash of $31.4M ($31.7M cash minus $0.4M debt); 11.28M shares outstanding.

Reasoning: Coda Octopus is a small, debt-free, high-margin (66-70% gross margin) niche sonar-technology supplier with real, growing free cash flow and a large net-cash cushion relative to its size, so a cash-flow DCF grounded in its own trailing FCF and recent segment growth is the most defensible method, with a higher discount rate reflecting its micro-cap illiquidity and customer/contract concentration.