Arteris, Inc.

AIP

TechnologySemiconductorsNASDAQ

$31.86

Market Cap: $1.47B

Arteris, Inc. (AIP) Valuation Summary

Updated May 11, 2026 01:25

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	—	N/A	—
Revenue DCF 10Y	$0.09 – $9.25	$1.62	-94.9%
▸ Trading Multiples
EV/Revenue	$4.17 – $19.10	$5.93	-81.4%

Valuation History

DCF Analysis

Arteris, Inc. (AIP) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$1.62

Market Price

$31.86

Upside / Downside

-94.9%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -47.0% to a target of 10.2% over 5 years, discounted at a WACC of 8.9%, Arteris, Inc. (AIP) has an intrinsic value of $1.62 per share (range: $0.09 – $9.25).

Key Assumptions

Current Operating Margin

-47.0%

Target Operating Margin

10.2%

WACC

8.9%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.9%

Target CapEx/Rev

7.3%

D&A/Revenue

4.9%

Tax Rate

21.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	91	28.9%	-35.5%	-32	-32	4	(2)	7	-37	-35
2027	109	19.5%	-24.1%	-26	-26	5	(3)	5	-29	-26
2028	131	20.4%	-12.6%	-17	-17	6	(5)	6	-21	-17
2029	153	16.9%	-1.2%	-2	-2	7	(6)	6	-7	-5
2030	179	16.9%	10.2%	18	14	9	(8)	7	8	5
2031	205	14.5%	10.2%	21	17	10	(11)	7	9	5
2032	230	12.2%	10.2%	24	19	11	(13)	7	10	6
2033	253	9.9%	10.2%	26	20	12	(16)	6	11	6
2034	272	7.6%	10.2%	28	22	13	(18)	5	11	6
2035	286	5.3%	10.2%	29	23	14	(21)	4	12	5

Enterprise Value Bridge

Sum of PV(FCFF)-50

Terminal Value (Gordon Growth at 3.0%)211

PV of Terminal Value94

Enterprise Value44

(–) Net Debt-25

Equity Value69

(÷) Shares Outstanding42

Fair Value per Share$1.62

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.2%	7.2%	10.2%	13.2%	16.2%
6.9%	$-2	$1	$3	$6	$9
7.9%	$-2	$0	$2	$5	$7
8.9%	$-2	$-0	$2	$3	$5
9.9%	$-2	$-0	$1	$3	$4
10.9%	$-2	$-1	$1	$2	$3

Current price: $31.86. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 28.1% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$5.93

Market Price

$31.86

Upside / Downside

-81.4%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Arteris, Inc. (AIP) has a fair value of $5.93 based on 8 comparable companies in the Semiconductors industry.

EV/Revenue Valuation — Semiconductors

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Arteris, Inc.AIP	1,347	18.7x	23.1x
AXT, Inc.AXTI	5,396	60.4x	67.4x
Wolfspeed, Inc.WOLF	2,032	10.7x	10.8x
Ambiq Micro, Inc.AMBQ	944	11.1x	11.4x
Consensus Cloud Solutions, Inc.CCSI	626	3.2x	3.2x
Weave Communications, Inc.WEAV	481	2.1x	2.5x
Backblaze, Inc.BLZE	449	3.4x	4.3x
Sprout Social, Inc.SPT	409	0.8x	0.8x
Domo, Inc.DOMO	161	0.8x	0.8x
Industry Median		3.3x	3.8x
(*) Revenue		71	57
= Enterprise Value		236	216
(-) Net Debt		-25	-25
Equity Value		260	241
(/) Outstanding shares		42	42
Fair Price		$6	$6

Selected Fair Value (avg of trailing + forward)

$5.93

-81.4%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

—

N/A

—

Revenue DCF 10Y

$0.09 – $9.25

$1.62

-94.9%

▸ Trading Multiples

EV/Revenue

$4.17 – $19.10

$5.93

-81.4%

DCF Analysis

Arteris, Inc. (AIP) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$1.62

Market Price

$31.86

Upside / Downside

-94.9%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-47.0%

Target Operating Margin

10.2%

WACC

8.9%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.9%

Target CapEx/Rev

7.3%

D&A/Revenue

4.9%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	91	28.9%	-35.5%	-32	-32	4	(2)	7	-37	-35
2027	109	19.5%	-24.1%	-26	-26	5	(3)	5	-29	-26
2028	131	20.4%	-12.6%	-17	-17	6	(5)	6	-21	-17
2029	153	16.9%	-1.2%	-2	-2	7	(6)	6	-7	-5
2030	179	16.9%	10.2%	18	14	9	(8)	7	8	5
2031	205	14.5%	10.2%	21	17	10	(11)	7	9	5
2032	230	12.2%	10.2%	24	19	11	(13)	7	10	6
2033	253	9.9%	10.2%	26	20	12	(16)	6	11	6
2034	272	7.6%	10.2%	28	22	13	(18)	5	11	6
2035	286	5.3%	10.2%	29	23	14	(21)	4	12	5

Enterprise Value Bridge

Sum of PV(FCFF)-50

Terminal Value (Gordon Growth at 3.0%)211

PV of Terminal Value94

Enterprise Value44

(–) Net Debt-25

Equity Value69

(÷) Shares Outstanding42

Fair Value per Share$1.62

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.2%	7.2%	10.2%	13.2%	16.2%
6.9%	$-2	$1	$3	$6	$9
7.9%	$-2	$0	$2	$5	$7
8.9%	$-2	$-0	$2	$3	$5
9.9%	$-2	$-0	$1	$3	$4
10.9%	$-2	$-1	$1	$2	$3

Current price: $31.86. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 28.1% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$5.93

Market Price

$31.86

Upside / Downside

-81.4%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Arteris, Inc. (AIP) has a fair value of $5.93 based on 8 comparable companies in the Semiconductors industry.

EV/Revenue Valuation — Semiconductors

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Arteris, Inc.AIP	1,347	18.7x	23.1x
AXT, Inc.AXTI	5,396	60.4x	67.4x
Wolfspeed, Inc.WOLF	2,032	10.7x	10.8x
Ambiq Micro, Inc.AMBQ	944	11.1x	11.4x
Consensus Cloud Solutions, Inc.CCSI	626	3.2x	3.2x
Weave Communications, Inc.WEAV	481	2.1x	2.5x
Backblaze, Inc.BLZE	449	3.4x	4.3x
Sprout Social, Inc.SPT	409	0.8x	0.8x
Domo, Inc.DOMO	161	0.8x	0.8x
Industry Median		3.3x	3.8x
(*) Revenue		71	57
= Enterprise Value		236	216
(-) Net Debt		-25	-25
Equity Value		260	241
(/) Outstanding shares		42	42
Fair Price		$6	$6

Selected Fair Value (avg of trailing + forward)

$5.93

-81.4%