As of May 27, 2025, Cannara Biotech Inc has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $0.12, this represents a potential upside of -381.7%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -370.5% |
| Potential Upside (10-year) | -381.7% |
| Discount Rate (WACC) | 6.4% - 9.2% |
Revenue is projected to grow from $3 million in 08-2020 to $4 million by 08-2030, representing a compound annual growth rate of approximately 2.9%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 08-2020 | 3 | 23% |
| 08-2021 | 3 | 5% |
| 08-2022 | 3 | 3% |
| 08-2023 | 3 | 3% |
| 08-2024 | 3 | 2% |
| 08-2025 | 3 | 4% |
| 08-2026 | 3 | 4% |
| 08-2027 | 3 | 5% |
| 08-2028 | 3 | 2% |
| 08-2029 | 4 | 4% |
| 08-2030 | 4 | 2% |
Net profit margin is expected to improve from -508% in 08-2020 to -366% by 08-2030, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 08-2020 | (13) | -508% |
| 08-2021 | (10) | -372% |
| 08-2022 | (10) | -371% |
| 08-2023 | (11) | -369% |
| 08-2024 | (11) | -368% |
| 08-2025 | (11) | -367% |
| 08-2026 | (12) | -367% |
| 08-2027 | (12) | -367% |
| 08-2028 | (13) | -367% |
| 08-2029 | (13) | -367% |
| 08-2030 | (13) | -366% |
. Projected CapEx is expected to maintain at approximately 446% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 08-2021 | 9 |
| 08-2022 | 11 |
| 08-2023 | 14 |
| 08-2024 | 12 |
| 08-2025 | 13 |
| 08-2026 | 13 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 10 |
| Days Inventory | 355 |
| Days Payables | 0 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 9M/2021 | (3) | (3) | 9 | (1) | (8) |
| 2022 | (2) | (4) | 12 | 0 | (11) |
| 2023 | 1 | (4) | 13 | 0 | (8) |
| 2024 | (1) | (4) | 13 | (0) | (10) |
| 2025 | (1) | (4) | 14 | 0 | (11) |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -370.5% |
| 10-Year DCF (Growth) | 0.00 | -381.7% |
| 5-Year DCF (EBITDA) | 0.00 | -100.0% |
| 10-Year DCF (EBITDA) | 0.00 | -100.0% |
Is Cannara Biotech Inc (LOVE.CN) a buy or a sell? Cannara Biotech Inc is definitely a sell. Based on our DCF analysis, Cannara Biotech Inc (LOVE.CN) appears to be overvalued with upside potential of -381.7%. 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 $0.12.