Caesarstone Ltd.

CSTE

IndustrialsConstructionNASDAQ

$1.38

Market Cap: $47.72M

Caesarstone Ltd. (CSTE) Valuation Summary

Updated May 11, 2026 16:08

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$4.41 – $326.47	$29.83	+2061.8%
Revenue DCF 10Y	$0.65 – $173.19	$13.45	+874.7%
▸ Trading Multiples
EV/Revenue	$3.67 – $29.53	$8.34	+504.2%

Valuation History

DCF Analysis

Caesarstone Ltd. (CSTE) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$13.45

Market Price

$1.38

Upside / Downside

+874.7%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -12.9% to a target of 10.3% over 5 years, discounted at a WACC of 5.4%, Caesarstone Ltd. (CSTE) has an intrinsic value of $13.45 per share (range: $0.65 – $173.19).

Key Assumptions

Current Operating Margin

-12.9%

Target Operating Margin

10.3%

WACC

5.4%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.8%

Target CapEx/Rev

7.0%

D&A/Revenue

4.7%

Tax Rate

9.8%

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	403	1.4%	-8.3%	-33	-33	19	(13)	29	-57	-55
2027	414	2.8%	-3.6%	-15	-15	19	(15)	4	-15	-13
2028	373	-10.0%	1.0%	4	3	18	(15)	-14	19	17
2029	336	-10.0%	5.7%	19	17	16	(15)	-12	30	25
2030	302	-10.0%	10.3%	31	28	14	(15)	-11	39	30
2031	275	-9.0%	10.3%	28	26	13	(15)	-9	33	25
2032	257	-6.6%	10.3%	26	24	12	(15)	-6	27	19
2033	246	-4.2%	10.3%	25	23	12	(15)	-4	23	15
2034	242	-1.8%	10.3%	25	22	11	(16)	-1	19	12
2035	243	0.6%	10.3%	25	23	11	(17)	0	16	10

Enterprise Value Bridge

Sum of PV(FCFF)85

Terminal Value (Gordon Growth at 3.0%)709

PV of Terminal Value431

Enterprise Value516

(–) Net Debt51

Equity Value465

(÷) Shares Outstanding35

Fair Value per Share$13.45

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.3%	7.3%	10.3%	13.3%	16.3%
3.4%	$17	$56	$95	$134	$173
4.4%	$3	$14	$25	$36	$47
5.4%	$1	$7	$13	$20	$26
6.4%	$-0	$4	$9	$13	$18
7.4%	$-1	$3	$6	$10	$13

Current price: $1.38. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 33.3% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Caesarstone Ltd. (CSTE) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$29.83

Market Price

$1.38

Upside / Downside

+2061.8%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-12.9%

Target Operating Margin

10.3%

WACC

5.4%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.8%

Target CapEx/Rev

7.0%

D&A/Revenue

4.7%

Tax Rate

9.8%

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	403	1.4%	-8.3%	-33	-33	19	(15)	29	-58	-57
2027	414	2.8%	-3.6%	-15	-15	19	(19)	4	-18	-17
2028	373	-10.0%	1.0%	4	3	18	(20)	-14	15	13
2029	336	-10.0%	5.7%	19	17	16	(21)	-12	24	20
2030	302	-10.0%	10.3%	31	28	14	(21)	-11	32	25

Enterprise Value Bridge

Sum of PV(FCFF)-15

Terminal Value (Gordon Growth at 3.0%)1,389

PV of Terminal Value1,097

Enterprise Value1,082

(–) Net Debt51

Equity Value1,031

(÷) Shares Outstanding35

Fair Value per Share$29.83

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.3%	7.3%	10.3%	13.3%	16.3%
3.4%	$103	$159	$215	$271	$326
4.4%	$25	$40	$55	$71	$86
5.4%	$12	$21	$30	$39	$47
6.4%	$7	$13	$19	$26	$32
7.4%	$4	$9	$14	$19	$23

Current price: $1.38. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 33.3% 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

$8.34

Market Price

$1.38

Upside / Downside

+504.2%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Caesarstone Ltd. (CSTE) has a fair value of $8.34 based on 8 comparable companies in the Construction industry.

EV/Revenue Valuation — Construction

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Caesarstone Ltd.CSTE	48	0.2x	0.2x
NeoVolta Inc.NEOV	90	11.0x	24.4x
Alpha Pro Tech, Ltd.APT	66	1.0x	0.6x
EuroDry Ltd.EDRY	61	2.7x	2.4x
BGSF, Inc.BGSF	59	0.4x	0.1x
Asia Pacific Wire & Cable Corporation LimitedAPWC	30	0.1x	—
Uni-Fuels Holdings LimitedUFG	26	0.1x	0.1x
Knightscope, Inc.KSCP	25	0.7x	0.7x
Hyperscale Data, Inc.GPUS	13	1.2x	3.5x
Industry Median		0.9x	0.7x
(*) Revenue		397	509
= Enterprise Value		338	340
(-) Net Debt		51	51
Equity Value		287	289
(/) Outstanding shares		35	35
Fair Price		$8	$8

Selected Fair Value (avg of trailing + forward)

$8.34

+504.2%

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

$4.41 – $326.47

$29.83

+2061.8%

Revenue DCF 10Y

$0.65 – $173.19

$13.45

+874.7%

▸ Trading Multiples

EV/Revenue

$3.67 – $29.53

$8.34

+504.2%

DCF Analysis

Caesarstone Ltd. (CSTE) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$13.45

Market Price

$1.38

Upside / Downside

+874.7%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-12.9%

Target Operating Margin

10.3%

WACC

5.4%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.8%

Target CapEx/Rev

7.0%

D&A/Revenue

4.7%

Tax Rate

9.8%

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	403	1.4%	-8.3%	-33	-33	19	(13)	29	-57	-55
2027	414	2.8%	-3.6%	-15	-15	19	(15)	4	-15	-13
2028	373	-10.0%	1.0%	4	3	18	(15)	-14	19	17
2029	336	-10.0%	5.7%	19	17	16	(15)	-12	30	25
2030	302	-10.0%	10.3%	31	28	14	(15)	-11	39	30
2031	275	-9.0%	10.3%	28	26	13	(15)	-9	33	25
2032	257	-6.6%	10.3%	26	24	12	(15)	-6	27	19
2033	246	-4.2%	10.3%	25	23	12	(15)	-4	23	15
2034	242	-1.8%	10.3%	25	22	11	(16)	-1	19	12
2035	243	0.6%	10.3%	25	23	11	(17)	0	16	10

Enterprise Value Bridge

Sum of PV(FCFF)85

Terminal Value (Gordon Growth at 3.0%)709

PV of Terminal Value431

Enterprise Value516

(–) Net Debt51

Equity Value465

(÷) Shares Outstanding35

Fair Value per Share$13.45

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.3%	7.3%	10.3%	13.3%	16.3%
3.4%	$17	$56	$95	$134	$173
4.4%	$3	$14	$25	$36	$47
5.4%	$1	$7	$13	$20	$26
6.4%	$-0	$4	$9	$13	$18
7.4%	$-1	$3	$6	$10	$13

Current price: $1.38. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 33.3% 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

$8.34

Market Price

$1.38

Upside / Downside

+504.2%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Caesarstone Ltd. (CSTE) has a fair value of $8.34 based on 8 comparable companies in the Construction industry.

EV/Revenue Valuation — Construction

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Caesarstone Ltd.CSTE	48	0.2x	0.2x
NeoVolta Inc.NEOV	90	11.0x	24.4x
Alpha Pro Tech, Ltd.APT	66	1.0x	0.6x
EuroDry Ltd.EDRY	61	2.7x	2.4x
BGSF, Inc.BGSF	59	0.4x	0.1x
Asia Pacific Wire & Cable Corporation LimitedAPWC	30	0.1x	—
Uni-Fuels Holdings LimitedUFG	26	0.1x	0.1x
Knightscope, Inc.KSCP	25	0.7x	0.7x
Hyperscale Data, Inc.GPUS	13	1.2x	3.5x
Industry Median		0.9x	0.7x
(*) Revenue		397	509
= Enterprise Value		338	340
(-) Net Debt		51	51
Equity Value		287	289
(/) Outstanding shares		35	35
Fair Price		$8	$8

Selected Fair Value (avg of trailing + forward)

$8.34

+504.2%