What is FPVD's DCF valuation?

Force Protection Video Equipment Corp (FPVD) DCF Valuation Analysis

Executive Summary

As of June 2, 2025, Force Protection Video Equipment Corp has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $0.00, this represents a potential upside of -153.5%.

Key Metrics Value
DCF Fair Value (5-year) $0.00
DCF Fair Value (10-year) $0.00
Potential Upside (5-year) -143.6%
Potential Upside (10-year) -153.5%
Discount Rate (WACC) 6.9% - 9.2%

Financial Performance & Projections

Revenue Trends

Revenue is projected to grow from $2 million in 12-2020 to $7 million by 12-2030, representing a compound annual growth rate of approximately 13.3%.

Fiscal Year Revenue (USD millions) Growth
12-2020 2 3324%
12-2021 3 20%
12-2022 3 17%
12-2023 4 18%
12-2024 4 13%
12-2025 4 10%
12-2026 5 10%
12-2027 5 7%
12-2028 6 11%
12-2029 6 8%
12-2030 7 7%

Profitability Projections

Net profit margin is expected to improve from -715% in 12-2020 to -515% by 12-2030, driven by operational efficiency and economies of scale.

Fiscal Year Net Profit (USD millions) Profit Margin
12-2020 (16) -715%
12-2021 (14) -521%
12-2022 (16) -519%
12-2023 (19) -518%
12-2024 (21) -517%
12-2025 (23) -516%
12-2026 (25) -516%
12-2027 (27) -515%
12-2028 (30) -515%
12-2029 (33) -515%
12-2030 (35) -515%

DCF Model Components

1. Capital Expenditures (CapEx)

with a 5-year average of $0 million. Projected CapEx is expected to maintain at approximately 10% 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)
12-2021 0
12-2022 0
12-2023 0
12-2024 0
12-2025 0
12-2026 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 76
Days Inventory 0
Days Payables 0

4. Free Cash Flow Projections

Fiscal Year EBITDA Tax CapEx Change in NWC FCF
3M/2021 (3) (1) 0 (0) (1)
2022 (12) (6) 0 0 (6)
2023 (14) (7) 0 0 (8)
2024 (15) (8) 0 (0) (8)
2025 (17) (9) 0 0 (9)

DCF Valuation Parameters

Key Assumptions

  • Discount Rate (WACC): WACC / Discount Rate (selected: 6.9% - 9.2%)
  • Long-Term Growth Rate: Long-term Growth Rate (selected: 3.0% - 5.0%)
  • Terminal EV/EBITDA Multiple: 3.4x (based on peer average)

Valuation Summary

Valuation Method Fair Price (USD) Potential Upside
5-Year DCF (Growth) 0.00 -143.6%
10-Year DCF (Growth) 0.00 -153.5%
5-Year DCF (EBITDA) 0.00 NaN%
10-Year DCF (EBITDA) 0.00 NaN%

Enterprise Value Breakdown

  • 5-Year Model: $(179)M
  • 10-Year Model: $(220)M

Investment Conclusion

Is Force Protection Video Equipment Corp (FPVD) a buy or a sell? Force Protection Video Equipment Corp is definitely a sell. Based on our DCF analysis, Force Protection Video Equipment Corp (FPVD) appears to be overvalued with upside potential of -153.5%. 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 -715% to -515%)
  • Steady revenue growth (13.3% CAGR)
  • Strong free cash flow generation

Investors should consider reducing exposure at the current market price of $0.00.