As of April 4, 2026, Agora Inc has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $3.66, this represents a potential upside of -147.0%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -219.4% |
| Potential Upside (10-year) | -147.0% |
| Discount Rate (WACC) | 7.3% - 9.8% |
Revenue is projected to grow from $141 million in 12-2025 to $295 million by 12-2035, representing a compound annual growth rate of approximately 7.7%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2025 | 141 | 6% |
| 12-2026 | 162 | 15% |
| 12-2027 | 190 | 17% |
| 12-2028 | 202 | 7% |
| 12-2029 | 215 | 7% |
| 12-2030 | 232 | 8% |
| 12-2031 | 244 | 5% |
| 12-2032 | 257 | 6% |
| 12-2033 | 270 | 5% |
| 12-2034 | 278 | 3% |
| 12-2035 | 295 | 6% |
Net profit margin is expected to improve from 7% in 12-2025 to 16% by 12-2035, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2025 | 10 | 7% |
| 12-2026 | 14 | 9% |
| 12-2027 | 19 | 10% |
| 12-2028 | 24 | 12% |
| 12-2029 | 28 | 13% |
| 12-2030 | 34 | 15% |
| 12-2031 | 36 | 15% |
| 12-2032 | 39 | 15% |
| 12-2033 | 41 | 15% |
| 12-2034 | 43 | 16% |
| 12-2035 | 47 | 16% |
with a 5-year average of $61 million. Projected CapEx is expected to maintain at approximately 40% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2026 | 71 |
| 12-2027 | 45 |
| 12-2028 | 58 |
| 12-2029 | 68 |
| 12-2030 | 80 |
| 12-2031 | 86 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 82 |
| Days Inventory | 0 |
| Days Payables | 88 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2026 | 65 | 0 | 64 | 8 | (8) |
| 2027 | 40 | 0 | 75 | 3 | (39) |
| 2028 | 56 | 0 | 80 | 1 | (26) |
| 2029 | 69 | 0 | 86 | 4 | (21) |
| 2030 | 84 | 0 | 92 | 3 | (11) |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -219.4% |
| 10-Year DCF (Growth) | 0.00 | -147.0% |
| 5-Year DCF (EBITDA) | 13.40 | 266.2% |
| 10-Year DCF (EBITDA) | 13.90 | 279.9% |
Is Agora Inc (API) a buy or a sell? Agora Inc is definitely a sell. Based on our DCF analysis, Agora Inc (API) appears to be overvalued with upside potential of -147.0%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider reducing exposure at the current market price of $3.66.