What is ENW.V's DCF valuation?

Enwave Corp (ENW.V) DCF Valuation Analysis

Executive Summary

As of June 13, 2025, Enwave Corp has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $0.38, this represents a potential upside of -37049244.6%.

Key Metrics Value
DCF Fair Value (5-year) $0.00
DCF Fair Value (10-year) $0.00
Potential Upside (5-year) -251496.4%
Potential Upside (10-year) -37049244.6%
Discount Rate (WACC) 5.9% - 8.3%

Financial Performance & Projections

Revenue Trends

Revenue is projected to grow from $8 million in 09-2024 to $5160662 million by 09-2034, representing a compound annual growth rate of approximately 281.0%.

Fiscal Year Revenue (USD millions) Growth
09-2024 8 28%
09-2025 73 796%
09-2026 344 369%
09-2027 1607 367%
09-2028 6378 297%
09-2029 23292 265%
09-2030 79320 241%
09-2031 248721 214%
09-2032 731484 194%
09-2033 2006509 174%
09-2034 5160662 157%

Profitability Projections

Net profit margin is expected to improve from -29% in 09-2024 to -11% by 09-2034, driven by operational efficiency and economies of scale.

Fiscal Year Net Profit (USD millions) Profit Margin
09-2024 (2) -29%
09-2025 (19) -25%
09-2026 (76) -22%
09-2027 (306) -19%
09-2028 (1,029) -16%
09-2029 (3,121) -13%
09-2030 (10,218) -13%
09-2031 (30,758) -12%
09-2032 (86,729) -12%
09-2033 (227,777) -11%
09-2034 (560,046) -11%

DCF Model Components

1. Capital Expenditures (CapEx)

with a 5-year average of $1 million. Projected CapEx is expected to maintain at approximately 5% of revenue.

2. Depreciation & Amortization

Depreciation is based on an average useful life of 5 years for capital assets.

Fiscal Year D&A (USD millions)
09-2025 2
09-2026 5
09-2027 20
09-2028 83
09-2029 313
09-2030 1096

3. Working Capital Requirements

Net working capital is expected to increase gradually, with projected changes affecting free cash flow.

Components Average Days
Days Receivables 32
Days Inventory 165
Days Payables 43

4. Free Cash Flow Projections

Fiscal Year EBITDA Tax CapEx Change in NWC FCF
9M/2025 (13) (0) 3 15 (31)
2026 (74) (0) 17 81 (172)
2027 (301) (1) 79 344 (724)
2028 (1,007) (4) 315 1299 (2,616)
2029 (3,026) (13) 1151 4426 (8,591)

DCF Valuation Parameters

Key Assumptions

  • Discount Rate (WACC): WACC / Discount Rate (selected: 5.9% - 8.3%)
  • Long-Term Growth Rate: Long-term Growth Rate (selected: 3.0% - 5.0%)
  • Terminal EV/EBITDA Multiple: 3.9x (based on peer average)

Valuation Summary

Valuation Method Fair Price (USD) Potential Upside
5-Year DCF (Growth) 0.00 -251496.4%
10-Year DCF (Growth) 0.00 -37049244.6%
5-Year DCF (EBITDA) 0.00 -100.0%
10-Year DCF (EBITDA) 0.00 -100.0%

Enterprise Value Breakdown

  • 5-Year Model: $(106,127)M
  • 10-Year Model: $(15,640,046)M

Investment Conclusion

Is Enwave Corp (ENW.V) a buy or a sell? Enwave Corp is definitely a sell. Based on our DCF analysis, Enwave Corp (ENW.V) appears to be overvalued with upside potential of -37049244.6%. 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:

  • Expanding profit margins (from -29% to -11%)
  • Steady revenue growth (281.0% CAGR)
  • Strong free cash flow generation

Investors should consider reducing exposure at the current market price of $0.38.