As of June 17, 2025, Orbit International Corp has a Discounted Cash Flow (DCF) derived fair value of $10.16 per share. With the current market price at $2.75, this represents a potential upside of 269.3%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $7.44 |
| DCF Fair Value (10-year) | $10.16 |
| Potential Upside (5-year) | 170.6% |
| Potential Upside (10-year) | 269.3% |
| Discount Rate (WACC) | 5.3% - 7.4% |
Revenue is projected to grow from $30 million in 12-2024 to $47 million by 12-2034, representing a compound annual growth rate of approximately 4.6%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 30 | 8% |
| 12-2025 | 31 | 5% |
| 12-2026 | 34 | 7% |
| 12-2027 | 35 | 4% |
| 12-2028 | 36 | 5% |
| 12-2029 | 38 | 5% |
| 12-2030 | 41 | 7% |
| 12-2031 | 43 | 4% |
| 12-2032 | 44 | 4% |
| 12-2033 | 46 | 3% |
| 12-2034 | 47 | 2% |
Net profit margin is expected to improve from -2% in 12-2024 to 5% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | (1) | -2% |
| 12-2025 | 0 | 1% |
| 12-2026 | 1 | 2% |
| 12-2027 | 1 | 3% |
| 12-2028 | 2 | 4% |
| 12-2029 | 2 | 5% |
| 12-2030 | 2 | 5% |
| 12-2031 | 2 | 5% |
| 12-2032 | 2 | 5% |
| 12-2033 | 2 | 5% |
| 12-2034 | 3 | 5% |
with a 5-year average of $0 million. Projected CapEx is expected to maintain at approximately 1% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 0 |
| 12-2026 | 0 |
| 12-2027 | 0 |
| 12-2028 | 0 |
| 12-2029 | 0 |
| 12-2030 | 0 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 56 |
| Days Inventory | 187 |
| Days Payables | 20 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2025 | 1 | 0 | 0 | 2 | (1) |
| 2026 | 1 | 0 | 0 | 0 | 0 |
| 2027 | 2 | 0 | 0 | 0 | 1 |
| 2028 | 2 | 0 | 0 | 1 | 1 |
| 2029 | 3 | 0 | 0 | 0 | 2 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 7.44 | 170.6% |
| 10-Year DCF (Growth) | 10.16 | 269.3% |
| 5-Year DCF (EBITDA) | 3.88 | 41.2% |
| 10-Year DCF (EBITDA) | 5.82 | 111.5% |
Is Orbit International Corp (ORBT) a buy or a sell? Orbit International Corp is definitely a buy. Based on our DCF analysis, Orbit International Corp (ORBT) appears to be significantly undervalued with upside potential of 269.3%. 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 $2.75.