CSP Inc.

CSPI ·Technology, Information Technology Services, United States
Valuation › AI Valuation

AI Valuation

AI-generated fair value estimate for this company.

AI Fair Value $5.03
Market Price $7.57
Overvalued By 50.5%

Method: 10-year two-stage DCF: normalized FCF base of $2.0M (between the -$1.41M TTM figure, depressed by one-time items, and the $1.92M FY2025 figure); 4% annual FCF growth years 1-5, 3% years 6-10, 10% discount rate, 2.5% terminal growth; plus $21.09M net cash. Equity value $50.66M / 10.08M shares = $5.03/share.

Reasoning: CSP Inc is a small, profitable-ish IT/cybersecurity (ARIA/Myricom) and managed-services business with a large net cash cushion relative to its size, so a conservative normalized-FCF DCF anchored to its uneven recent profitability, grossed up by its substantial net cash, is the most appropriate rigorous method.