As of May 23, 2025, Nerds On Site Inc has a Discounted Cash Flow (DCF) derived fair value of $0.14 per share. With the current market price at $0.03, this represents a potential upside of 474.4%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.08 |
| DCF Fair Value (10-year) | $0.14 |
| Potential Upside (5-year) | 217.4% |
| Potential Upside (10-year) | 474.4% |
| Discount Rate (WACC) | 4.7% - 5.9% |
Revenue is projected to grow from $11 million in 05-2024 to $19 million by 05-2034, representing a compound annual growth rate of approximately 5.6%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 05-2024 | 11 | 4% |
| 05-2025 | 12 | 7% |
| 05-2026 | 13 | 7% |
| 05-2027 | 13 | 6% |
| 05-2028 | 14 | 5% |
| 05-2029 | 15 | 6% |
| 05-2030 | 15 | 2% |
| 05-2031 | 16 | 8% |
| 05-2032 | 17 | 4% |
| 05-2033 | 18 | 8% |
| 05-2034 | 19 | 3% |
Net profit margin is expected to improve from -4% in 05-2024 to 2% by 05-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 05-2024 | (0) | -4% |
| 05-2025 | (0) | -2% |
| 05-2026 | (0) | -1% |
| 05-2027 | 0 | 0% |
| 05-2028 | 0 | 1% |
| 05-2029 | 0 | 2% |
| 05-2030 | 0 | 2% |
| 05-2031 | 0 | 2% |
| 05-2032 | 0 | 2% |
| 05-2033 | 0 | 2% |
| 05-2034 | 0 | 2% |
with a 5-year average of $0 million. Projected CapEx is expected to maintain at approximately 0% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 05-2025 | 0 |
| 05-2026 | 0 |
| 05-2027 | 0 |
| 05-2028 | 0 |
| 05-2029 | 0 |
| 05-2030 | 0 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 4 |
| Days Inventory | 3 |
| Days Payables | 7 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 3M/2025 | (0) | (0) | 0 | 0 | (0) |
| 2026 | (0) | (0) | 0 | (0) | 0 |
| 2027 | 0 | 0 | 0 | 0 | 0 |
| 2028 | 0 | 0 | 0 | 0 | 0 |
| 2029 | 1 | 0 | 0 | (0) | 0 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.08 | 217.4% |
| 10-Year DCF (Growth) | 0.14 | 474.4% |
| 5-Year DCF (EBITDA) | 0.02 | -29.5% |
| 10-Year DCF (EBITDA) | 0.05 | 66.3% |
Is Nerds On Site Inc (NERD.CN) a buy or a sell? Nerds On Site Inc is definitely a buy. Based on our DCF analysis, Nerds On Site Inc (NERD.CN) appears to be significantly undervalued with upside potential of 474.4%. 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 a strong buy at the current market price of $0.03.