What is ZYXI's DCF valuation?

Zynex Inc (ZYXI) DCF Valuation Analysis

Executive Summary

As of April 4, 2026, Zynex Inc has a Discounted Cash Flow (DCF) derived fair value of $1.46 per share. With the current market price at $0.12, this represents a potential upside of 1067.4%.

Key Metrics Value
DCF Fair Value (5-year) $0.00
DCF Fair Value (10-year) $1.46
Potential Upside (5-year) -590.2%
Potential Upside (10-year) 1067.4%
Discount Rate (WACC) 8.3% - 10.4%

Financial Performance & Projections

Revenue Trends

Revenue is projected to grow from $192 million in 12-2024 to $174 million by 12-2034, representing a compound annual growth rate of approximately -1.0%.

Fiscal Year Revenue (USD millions) Growth
12-2024 192 4%
12-2025 83 -57%
12-2026 94 13%
12-2027 107 14%
12-2028 119 11%
12-2029 132 11%
12-2030 140 6%
12-2031 150 7%
12-2032 158 5%
12-2033 166 5%
12-2034 174 5%

Profitability Projections

Net profit margin is expected to improve from 2% in 12-2024 to 3% by 12-2034, driven by operational efficiency and economies of scale.

Fiscal Year Net Profit (USD millions) Profit Margin
12-2024 3 2%
12-2025 1 2%
12-2026 2 2%
12-2027 3 2%
12-2028 3 3%
12-2029 4 3%
12-2030 4 3%
12-2031 4 3%
12-2032 5 3%
12-2033 5 3%
12-2034 5 3%

DCF Model Components

1. Capital Expenditures (CapEx)

with a 5-year average of $1 million. Projected CapEx is expected to maintain at approximately 1% 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)
12-2025 1
12-2026 1
12-2027 1
12-2028 1
12-2029 1
12-2030 1

3. Working Capital Requirements

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

Components Average Days
Days Receivables 56
Days Inventory 137
Days Payables 0

4. Free Cash Flow Projections

Fiscal Year EBITDA Tax CapEx Change in NWC FCF
3M/2025 1 0 0 (3) 4
2026 4 1 1 (0) 3
2027 5 1 1 2 2
2028 6 1 1 4 1
2029 7 1 1 2 4

DCF Valuation Parameters

Key Assumptions

  • Discount Rate (WACC): WACC / Discount Rate (selected: 8.3% - 10.4%)
  • Long-Term Growth Rate: Long-term Growth Rate (selected: 2.5% - 4.5%)
  • Terminal EV/EBITDA Multiple: 16.2x (based on peer average)

Valuation Summary

Valuation Method Fair Price (USD) Potential Upside
5-Year DCF (Growth) 0.00 -590.2%
10-Year DCF (Growth) 1.46 1067.4%
5-Year DCF (EBITDA) 2.60 2068.3%
10-Year DCF (EBITDA) 3.33 2671.3%

Enterprise Value Breakdown

  • 5-Year Model: $39M
  • 10-Year Model: $66M

Investment Conclusion

Is Zynex Inc (ZYXI) a buy or a sell? Zynex Inc is definitely a buy. Based on our DCF analysis, Zynex Inc (ZYXI) appears to be significantly undervalued with upside potential of 1067.4%. 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:

  • Expanding profit margins (from 2% to 3%)

Investors should consider a strong buy at the current market price of $0.12.