Capstone Holding Corp.

CAPS

Basic MaterialsConstruction MaterialsNASDAQ

$0.37

Market Cap: $1.97M

Capstone Holding Corp. (CAPS) Valuation Summary

Updated May 10, 2026 08:57

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$34.89 – $1,041.49	$280.58	+75733.5%
Revenue DCF 10Y	$59.85 – $997.39	$290.37	+78378.8%

Valuation History

DCF Analysis

Capstone Holding Corp. (CAPS) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$290.37

Market Price

$0.37

Upside / Downside

+78378.8%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -1.4% to a target of 13.1% over 5 years, discounted at a WACC of 9.3%, Capstone Holding Corp. (CAPS) has an intrinsic value of $290.37 per share (range: $59.85 – $997.39).

Key Assumptions

Current Operating Margin

-1.4%

Target Operating Margin

13.1%

WACC

9.3%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

0.6%

Target CapEx/Rev

6.0%

D&A/Revenue

0.7%

Tax Rate

0.0%

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)
2025	47	4.5%	1.5%	1	1	0	(1)	2	-2	-2
2026	70	49.2%	4.4%	3	3	0	(1)	6	-3	-3
2027	70	-0.3%	7.3%	5	5	0	(2)	-0	4	3
2028	70	0.1%	10.2%	7	7	0	(2)	0	6	4
2029	70	0.5%	13.1%	9	9	0	(2)	0	7	5
2030	71	0.9%	13.1%	9	9	0	(3)	0	7	4
2031	72	1.3%	13.1%	9	9	0	(3)	0	7	4
2032	73	1.8%	13.1%	10	10	0	(4)	0	6	3
2033	75	2.2%	13.1%	10	10	0	(4)	0	6	3
2034	77	2.6%	13.1%	10	10	1	(5)	0	5	2

Enterprise Value Bridge

Sum of PV(FCFF)24

Terminal Value (Gordon Growth at 3.0%)90

PV of Terminal Value39

Enterprise Value62

(–) Net Debt17

Equity Value46

(÷) Shares Outstanding0

Fair Value per Share$290.37

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.1%	10.1%	13.1%	16.1%	19.1%
7.3%	$-11	$241	$493	$745	$997
8.3%	$-32	$170	$373	$575	$777
9.3%	$-46	$122	$290	$459	$627
10.3%	$-57	$87	$230	$374	$518
11.3%	$-65	$60	$185	$310	$435

Current price: $0.37. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 24.3% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Capstone Holding Corp. (CAPS) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$280.58

Market Price

$0.37

Upside / Downside

+75733.5%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-1.4%

Target Operating Margin

13.1%

WACC

9.3%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

0.6%

Target CapEx/Rev

6.0%

D&A/Revenue

0.7%

Tax Rate

0.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	CapEx	ΔNWC	FCFF	PV(FCFF)
2025	47	4.5%	1.5%	1	1	(1)	2	-2	-2
2026	70	49.2%	4.4%	3	3	(2)	6	-4	-3
2027	70	-0.3%	7.3%	5	5	(3)	-0	3	2
2028	70	0.8%	10.2%	7	7	(3)	0	4	3
2029	72	1.9%	13.1%	9	9	(4)	0	5	4

Enterprise Value Bridge

Sum of PV(FCFF)3

Terminal Value (Gordon Growth at 3.0%)86

PV of Terminal Value58

Enterprise Value61

(–) Net Debt17

Equity Value44

(÷) Shares Outstanding0

Fair Value per Share$280.58

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.1%	10.1%	13.1%	16.1%	19.1%
7.3%	$-40	$230	$501	$771	$1041
8.3%	$-63	$153	$370	$586	$802
9.3%	$-79	$101	$281	$460	$640
10.3%	$-90	$63	$216	$369	$522
11.3%	$-98	$35	$168	$301	$434

Current price: $0.37. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 24.3% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

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

$34.89 – $1,041.49

$280.58

+75733.5%

Revenue DCF 10Y

$59.85 – $997.39

$290.37

+78378.8%

DCF Analysis

Capstone Holding Corp. (CAPS) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$290.37

Market Price

$0.37

Upside / Downside

+78378.8%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-1.4%

Target Operating Margin

13.1%

WACC

9.3%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

0.6%

Target CapEx/Rev

6.0%

D&A/Revenue

0.7%

Tax Rate

0.0%

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)
2025	47	4.5%	1.5%	1	1	0	(1)	2	-2	-2
2026	70	49.2%	4.4%	3	3	0	(1)	6	-3	-3
2027	70	-0.3%	7.3%	5	5	0	(2)	-0	4	3
2028	70	0.1%	10.2%	7	7	0	(2)	0	6	4
2029	70	0.5%	13.1%	9	9	0	(2)	0	7	5
2030	71	0.9%	13.1%	9	9	0	(3)	0	7	4
2031	72	1.3%	13.1%	9	9	0	(3)	0	7	4
2032	73	1.8%	13.1%	10	10	0	(4)	0	6	3
2033	75	2.2%	13.1%	10	10	0	(4)	0	6	3
2034	77	2.6%	13.1%	10	10	1	(5)	0	5	2

Enterprise Value Bridge

Sum of PV(FCFF)24

Terminal Value (Gordon Growth at 3.0%)90

PV of Terminal Value39

Enterprise Value62

(–) Net Debt17

Equity Value46

(÷) Shares Outstanding0

Fair Value per Share$290.37

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.1%	10.1%	13.1%	16.1%	19.1%
7.3%	$-11	$241	$493	$745	$997
8.3%	$-32	$170	$373	$575	$777
9.3%	$-46	$122	$290	$459	$627
10.3%	$-57	$87	$230	$374	$518
11.3%	$-65	$60	$185	$310	$435

Current price: $0.37. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 24.3% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.