What is FCHS's DCF valuation?

First Choice Healthcare Solutions Inc (FCHS) DCF Valuation Analysis

Executive Summary

As of June 1, 2025, First Choice Healthcare Solutions Inc has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $0.01, this represents a potential upside of 0.0%.

Key Metrics Value
DCF Fair Value (5-year) $0.00
DCF Fair Value (10-year) $0.00
Potential Upside (5-year) 0.0%
Potential Upside (10-year) 0.0%
Discount Rate (WACC) -

Financial Performance & Projections

Revenue Trends

Fiscal Year Revenue (USD millions) Growth
12-2023 0 97%
12-2024 0 18%
12-2025 0 29%
12-2026 0 22%
12-2027 0 22%
12-2028 0 21%
12-2029 0 19%
12-2030 0 16%
12-2031 0 18%
12-2032 0 15%
12-2033 0 11%

Profitability Projections

Net profit margin is expected to improve from -27247% in 12-2023 to -3405% by 12-2033, driven by operational efficiency and economies of scale.

Fiscal Year Net Profit (USD millions) Profit Margin
12-2023 (8) -27247%
12-2024 (7) -701%
12-2025 (9) -902%
12-2026 (11) -1102%
12-2027 (13) -1345%
12-2028 (16) -1632%
12-2029 (19) -1940%
12-2030 (23) -2254%
12-2031 (27) -2662%
12-2032 (31) -3058%
12-2033 (34) -3405%

DCF Model Components

1. Capital Expenditures (CapEx)

with a 5-year average of $0 million. Projected CapEx is expected to maintain at approximately 57% 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)
12-2024 0
12-2025 0
12-2026 0
12-2027 0
12-2028 0
12-2029 0

3. Working Capital Requirements

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

Components Average Days
Days Receivables 562
Days Inventory 0
Days Payables 0

4. Free Cash Flow Projections

Fiscal Year EBITDA Tax CapEx Change in NWC FCF
3M/2024 (1) (1) 0 (0) 0
2025 (3) (3) 0 0 (0)
2026 (4) (4) 0 0 (0)
2027 (5) (5) 0 0 (0)
2028 (6) (6) 0 0 (0)

DCF Valuation Parameters

Key Assumptions

  • Discount Rate (WACC): - (selected: -)
  • Long-Term Growth Rate: - (selected: -)
  • Terminal EV/EBITDA Multiple: 7.6x (based on peer average)

Valuation Summary

Valuation Method Fair Price (USD) Potential Upside
5-Year DCF (Growth) 0.00 0.0%
10-Year DCF (Growth) 0.00 0.0%
5-Year DCF (EBITDA) 0.00 -100.0%
10-Year DCF (EBITDA) 0.00 -100.0%

Enterprise Value Breakdown

  • 5-Year Model: $(9)M
  • 10-Year Model: $(18)M

Investment Conclusion

Is First Choice Healthcare Solutions Inc (FCHS) a buy or a sell? First Choice Healthcare Solutions Inc is definitely a buy. Based on our DCF analysis, First Choice Healthcare Solutions Inc (FCHS) appears to be overvalued with upside potential of 0.0%. 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:

  • Expanding profit margins (from -27247% to -3405%)
  • Strong free cash flow generation

Investors should consider reducing exposure at the current market price of $0.01.