Daktronics, Inc.
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$26.40
Market Price
$17.96
Undervalued By
32.0%
Method: 10-year unlevered FCF DCF: $55M normalized FCF base (average of FY2025 $78.2M and FY2026 $34.3M free cash flow, smoothing a one-time FY2026 receivables build); 10% annual FCF growth for years 1-5; 5% for years 6-10; 10% discount rate; 3% terminal growth; $113.5M net cash; 48.09M shares outstanding.
Reasoning: Daktronics has a $311M+ order backlog sustained for six straight quarters and a structurally improving gross margin (19% in FY2022 to over 30% entering FY2027), supporting above-average near-term FCF growth; the discount rate reflects small/mid-cap industrial cyclicality despite the strong net-cash balance sheet.