Playboy, Inc.

AI-generated fair value estimate for this company.

Method: Levered FCF DCF plus licensing-backlog NPV: core FCF base of $7M (adjusted EBITDA excl. litigation of $21.9M, less ~$5M maintenance capex and ~$10M net interest on $160M senior debt) growing 15%/yr for 5 years as deleveraging continues, 4% terminal growth, 12% discount rate (highly leveraged, small-cap, litigation risk), giving an EV of ~$123M less net debt of $117.2M ($160M debt less $42.8M cash) = ~$6M core equity value; plus an estimated $37M NPV of the $343M unrecognized contracted licensing revenue backlog (assumed ~15% margin over its remaining ~5-year average term, discounted at 12%)

Reasoning: PLBY's licensing business is 90% backed by contractual minimum guarantees, and FY2025 showed meaningful improvement (net loss narrowed from $79.4M to $12.7M, adjusted EBITDA swung positive to $17.0M) alongside ongoing debt paydown. DCF value of ~$43M is well below the ~$123-125M market cap, implying the market is ascribing significant additional value to the Honey Birdette D2C brand and/or litigation-related contingencies not captured in this conservative FCF-plus-backlog estimate