As of April 4, 2026, Charlotte's Web Holdings Inc has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $1.02, this represents a potential upside of -877.3%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -981.5% |
| Potential Upside (10-year) | -877.3% |
| Discount Rate (WACC) | 5.8% - 7.5% |
Revenue is projected to grow from $50 million in 12-2024 to $66 million by 12-2034, representing a compound annual growth rate of approximately 2.8%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 50 | 21% |
| 12-2025 | 55 | 11% |
| 12-2026 | 56 | 2% |
| 12-2027 | 57 | 2% |
| 12-2028 | 59 | 2% |
| 12-2029 | 60 | 2% |
| 12-2030 | 61 | 2% |
| 12-2031 | 62 | 2% |
| 12-2032 | 63 | 2% |
| 12-2033 | 65 | 2% |
| 12-2034 | 66 | 2% |
Net profit margin is expected to improve from -60% in 12-2024 to -45% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | (30) | -60% |
| 12-2025 | (32) | -57% |
| 12-2026 | (31) | -54% |
| 12-2027 | (30) | -52% |
| 12-2028 | (29) | -49% |
| 12-2029 | (28) | -47% |
| 12-2030 | (28) | -47% |
| 12-2031 | (29) | -46% |
| 12-2032 | (29) | -46% |
| 12-2033 | (29) | -45% |
| 12-2034 | (30) | -45% |
with a 5-year average of $8 million. Projected CapEx is expected to maintain at approximately 10% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 4 |
| 12-2026 | 4 |
| 12-2027 | 5 |
| 12-2028 | 5 |
| 12-2029 | 6 |
| 12-2030 | 6 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 3 |
| Days Inventory | 238 |
| Days Payables | 36 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 3M/2025 | (7) | (0) | 1 | 0 | (9) |
| 2026 | (28) | (0) | 5 | 0 | (34) |
| 2027 | (26) | (0) | 6 | (1) | (30) |
| 2028 | (24) | (0) | 6 | (0) | (30) |
| 2029 | (23) | (0) | 6 | (0) | (29) |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -981.5% |
| 10-Year DCF (Growth) | 0.00 | -877.3% |
| 5-Year DCF (EBITDA) | 0.00 | -100.0% |
| 10-Year DCF (EBITDA) | 0.00 | -100.0% |
Is Charlotte's Web Holdings Inc (CWEB.TO) a buy or a sell? Charlotte's Web Holdings Inc is definitely a sell. Based on our DCF analysis, Charlotte's Web Holdings Inc (CWEB.TO) appears to be overvalued with upside potential of -877.3%. 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 $1.02.