Cumberland Pharmaceuticals Inc.

CPIX

HealthcareDrug Manufacturers - Specialty & GenericNASDAQ

$4.85

Market Cap: $72.67M

Cumberland Pharmaceuticals Inc. (CPIX) Valuation Summary

Updated Apr 6, 2026 22:25

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.33 – $5.83	$1.61	-48.0%
Revenue DCF 10Y	$1.09 – $7.92	$2.97	-4.1%
▸ Trading Multiples
EV/Revenue	$5.67 – $85.85	$16.35	+427.4%

Valuation History

DCF Analysis

Cumberland Pharmaceuticals Inc. (CPIX) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$2.97

Market Price

$4.85

Upside / Downside

-38.8%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -6.3% to a target of 13.3% over 5 years, discounted at a WACC of 8.3%, Cumberland Pharmaceuticals Inc. (CPIX) has an intrinsic value of $2.97 per share (range: $1.09 – $7.92).

Key Assumptions

Current Operating Margin

-6.3%

Target Operating Margin

13.3%

WACC

8.3%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.6%

Target CapEx/Rev

20.4%

D&A/Revenue

13.6%

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	47	5.5%	-2.4%	-1	-1	6	(2)	1	3	2
2027	38	-18.6%	1.6%	1	0	5	(2)	-1	5	4
2028	45	18.2%	5.5%	2	2	6	(3)	1	4	3
2029	37	-18.2%	9.4%	3	3	5	(3)	-1	5	4
2030	41	10.8%	13.3%	5	4	6	(4)	0	5	3
2031	45	9.5%	13.3%	6	5	6	(6)	0	5	3
2032	47	4.6%	13.3%	6	5	6	(7)	0	4	2
2033	49	4.2%	13.3%	7	5	7	(8)	0	3	2
2034	51	3.8%	13.3%	7	5	7	(9)	0	3	1
2035	53	3.4%	13.3%	7	6	7	(11)	0	2	1

Enterprise Value Bridge

Sum of PV(FCFF)27

Terminal Value (Gordon Growth at 3.0%)35

PV of Terminal Value16

Enterprise Value43

(–) Net Debt-1

Equity Value44

(÷) Shares Outstanding15

Fair Value per Share$2.97

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
6.3%	$1	$2	$4	$6	$8
7.2%	$1	$2	$3	$5	$6
8.3%	$1	$2	$3	$4	$5
9.3%	$1	$2	$3	$4	$5
10.3%	$1	$2	$2	$3	$4

Current price: $4.85. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 12.1% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Cumberland Pharmaceuticals Inc. (CPIX) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$1.61

Market Price

$4.85

Upside / Downside

-66.8%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-6.3%

Target Operating Margin

13.3%

WACC

8.3%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.6%

Target CapEx/Rev

20.4%

D&A/Revenue

13.6%

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	47	5.5%	-2.4%	-1	-1	6	(2)	1	2	2
2027	38	-18.6%	1.6%	1	0	5	(3)	-1	3	3
2028	45	18.2%	5.5%	2	2	6	(6)	1	1	1
2029	37	-18.2%	9.4%	3	3	5	(6)	-1	3	2
2030	41	10.8%	13.3%	5	4	6	(8)	0	1	1

Enterprise Value Bridge

Sum of PV(FCFF)8

Terminal Value (Gordon Growth at 3.0%)21

PV of Terminal Value14

Enterprise Value23

(–) Net Debt-1

Equity Value24

(÷) Shares Outstanding15

Fair Value per Share$1.61

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
6.3%	$0	$1	$2	$4	$6
7.2%	$0	$1	$2	$3	$5
8.3%	$0	$1	$2	$3	$4
9.3%	$0	$1	$1	$2	$3
10.3%	$0	$1	$1	$2	$3

Current price: $4.85. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 12.1% 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

$16.35

Market Price

$4.85

Upside / Downside

+237.1%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Cumberland Pharmaceuticals Inc. (CPIX) has a fair value of $16.35 based on 4 comparable companies in the Drug Manufacturers - Specialty & Generic industry.

EV/Revenue Valuation — Drug Manufacturers - Specialty & Generic

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Cumberland Pharmaceuticals Inc.CPIX	73	1.6x	1.9x
Celularity Inc.CELU	34	1.9x	1.6x
Dyadic International, Inc.DYAI	32	11.0x	8.8x
ABVC BioPharma, Inc.ABVC	20	28.8x	58.2x
Inotiv, Inc.NOTV	9	1.0x	1.0x
Industry Median		6.4x	5.2x
(*) Revenue		45	38
= Enterprise Value		287	200
(-) Net Debt		-1	-1
Equity Value		288	201
(/) Outstanding shares		15	15
Fair Price		$19	$13

Selected Fair Value (avg of trailing + forward)

$16.35

+237.1%

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

$0.33 – $5.83

$1.61

-48.0%

Revenue DCF 10Y

$1.09 – $7.92

$2.97

-4.1%

▸ Trading Multiples

EV/Revenue

$5.67 – $85.85

$16.35

+427.4%

DCF Analysis

Cumberland Pharmaceuticals Inc. (CPIX) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$2.97

Market Price

$4.85

Upside / Downside

-38.8%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-6.3%

Target Operating Margin

13.3%

WACC

8.3%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.6%

Target CapEx/Rev

20.4%

D&A/Revenue

13.6%

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	47	5.5%	-2.4%	-1	-1	6	(2)	1	3	2
2027	38	-18.6%	1.6%	1	0	5	(2)	-1	5	4
2028	45	18.2%	5.5%	2	2	6	(3)	1	4	3
2029	37	-18.2%	9.4%	3	3	5	(3)	-1	5	4
2030	41	10.8%	13.3%	5	4	6	(4)	0	5	3
2031	45	9.5%	13.3%	6	5	6	(6)	0	5	3
2032	47	4.6%	13.3%	6	5	6	(7)	0	4	2
2033	49	4.2%	13.3%	7	5	7	(8)	0	3	2
2034	51	3.8%	13.3%	7	5	7	(9)	0	3	1
2035	53	3.4%	13.3%	7	6	7	(11)	0	2	1

Enterprise Value Bridge

Sum of PV(FCFF)27

Terminal Value (Gordon Growth at 3.0%)35

PV of Terminal Value16

Enterprise Value43

(–) Net Debt-1

Equity Value44

(÷) Shares Outstanding15

Fair Value per Share$2.97

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
6.3%	$1	$2	$4	$6	$8
7.2%	$1	$2	$3	$5	$6
8.3%	$1	$2	$3	$4	$5
9.3%	$1	$2	$3	$4	$5
10.3%	$1	$2	$2	$3	$4

Current price: $4.85. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 12.1% 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

$16.35

Market Price

$4.85

Upside / Downside

+237.1%

Verdict

Undervalued

EV/Revenue Valuation — Drug Manufacturers - Specialty & Generic

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Cumberland Pharmaceuticals Inc.CPIX	73	1.6x	1.9x
Celularity Inc.CELU	34	1.9x	1.6x
Dyadic International, Inc.DYAI	32	11.0x	8.8x
ABVC BioPharma, Inc.ABVC	20	28.8x	58.2x
Inotiv, Inc.NOTV	9	1.0x	1.0x
Industry Median		6.4x	5.2x
(*) Revenue		45	38
= Enterprise Value		287	200
(-) Net Debt		-1	-1
Equity Value		288	201
(/) Outstanding shares		15	15
Fair Price		$19	$13

Selected Fair Value (avg of trailing + forward)

$16.35

+237.1%