Cohu, Inc.

AI-generated fair value estimate for this company.

Method: 10-year two-stage DCF on a cross-cycle-normalized FCF base of $40M (between the current AI-test-upcycle TTM FCF of $34.9M and the depressed FY2024 trough of -$7.9M); FCF growth 25% years 1-2, 15% years 3-5, 8% years 6-8, 5% years 9-10; 10% discount rate; 3% terminal growth; net cash $167M; 47.34M diluted shares.

Reasoning: Cohu's FCF has swung from +$85M to -$8M to +$35M over the last three years as semiconductor-equipment capex cycles turn, so a smoothed cross-cycle base is more reliable than extrapolating the current AI-test upcycle; the resulting value sits well below the recent momentum-driven share price.