Energy Focus, Inc.

EFOI

Consumer CyclicalFurnishings, Fixtures & AppliancesNASDAQ

$3.93

Market Cap: $24.78M

Energy Focus, Inc. (EFOI) Valuation Summary

Updated May 11, 2026 09:29

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.04 – $13.89	$0.04	-98.9%
Revenue DCF 10Y	—	N/A	—
▸ Trading Multiples
EV/Revenue	$0.25 – $0.81	$0.61	-84.4%

Valuation History

DCF Analysis

Energy Focus, Inc. (EFOI) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$0.04

Market Price

$3.93

Upside / Downside

-98.9%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -28.8% to a target of 7.7% over 5 years, discounted at a WACC of 8.2%, Energy Focus, Inc. (EFOI) has an intrinsic value of $0.04 per share (range: $0.04 – $13.89).

Key Assumptions

Current Operating Margin

-28.8%

Target Operating Margin

7.7%

WACC

8.2%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.7%

Target CapEx/Rev

6.0%

D&A/Revenue

1.4%

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	51	1341.4%	-21.5%	-11	-11	1	(1)	31	-42	-41
2027	46	-10.0%	-14.2%	-7	-7	1	(2)	-3	-4	-4
2028	42	-10.0%	-6.9%	-3	-3	1	(2)	-3	-1	-1
2029	37	-10.0%	0.4%	0	0	1	(2)	-3	1	1
2030	34	-10.0%	7.7%	3	2	0	(2)	-2	3	2

Enterprise Value Bridge

Sum of PV(FCFF)-42

Terminal Value (Gordon Growth at 3.0%)59

PV of Terminal Value41

Enterprise Value-1

(–) Net Debt-1

Equity Value0

(÷) Shares Outstanding6

Fair Value per Share$0.04

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
6.2%	$-2	$2	$6	$10	$14
7.2%	$-4	$-1	$2	$5	$8
8.2%	$-5	$-2	$0	$3	$5
9.2%	$-6	$-3	$-1	$1	$3
10.2%	$-6	$-4	$-2	$-1	$1

Current price: $3.93. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 65.5% 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

$0.61

Market Price

$3.93

Upside / Downside

-84.4%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Energy Focus, Inc. (EFOI) has a fair value of $0.61 based on 7 comparable companies in the Furnishings, Fixtures & Appliances industry.

EV/Revenue Valuation — Furnishings, Fixtures & Appliances

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Energy Focus, Inc.EFOI	22	5.9x	2.9x
Lulu's Fashion Lounge Holdings, Inc.LVLU	29	0.2x	0.1x
Rent the Runway, Inc.RENT	21	0.5x	0.6x
Good Times Restaurants Inc.GTIM	13	0.4x	0.5x
FGI Industries Ltd.FGI	12	0.3x	0.3x
Yunhong Green CTI Ltd.YHGJ	9	1.0x	—
HWH International Inc.HWH	6	6.0x	—
Worksport Ltd.WKSP	5	0.1x	1.1x
Industry Median		0.4x	0.5x
(*) Revenue		4	7
= Enterprise Value		1	4
(-) Net Debt		-1	-1
Equity Value		2	5
(/) Outstanding shares		6	6
Fair Price		$0	$1

Selected Fair Value (avg of trailing + forward)

$0.61

-84.4%

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

$0.04 – $13.89

$0.04

-98.9%

Revenue DCF 10Y

—

N/A

—

▸ Trading Multiples

EV/Revenue

$0.25 – $0.81

$0.61

-84.4%

DCF Analysis

Energy Focus, Inc. (EFOI) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$0.04

Market Price

$3.93

Upside / Downside

-98.9%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-28.8%

Target Operating Margin

7.7%

WACC

8.2%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.7%

Target CapEx/Rev

6.0%

D&A/Revenue

1.4%

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	51	1341.4%	-21.5%	-11	-11	1	(1)	31	-42	-41
2027	46	-10.0%	-14.2%	-7	-7	1	(2)	-3	-4	-4
2028	42	-10.0%	-6.9%	-3	-3	1	(2)	-3	-1	-1
2029	37	-10.0%	0.4%	0	0	1	(2)	-3	1	1
2030	34	-10.0%	7.7%	3	2	0	(2)	-2	3	2

Enterprise Value Bridge

Sum of PV(FCFF)-42

Terminal Value (Gordon Growth at 3.0%)59

PV of Terminal Value41

Enterprise Value-1

(–) Net Debt-1

Equity Value0

(÷) Shares Outstanding6

Fair Value per Share$0.04

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.7%	4.7%	7.7%	10.7%	13.7%
6.2%	$-2	$2	$6	$10	$14
7.2%	$-4	$-1	$2	$5	$8
8.2%	$-5	$-2	$0	$3	$5
9.2%	$-6	$-3	$-1	$1	$3
10.2%	$-6	$-4	$-2	$-1	$1

Current price: $3.93. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 65.5% 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

$0.61

Market Price

$3.93

Upside / Downside

-84.4%

Verdict

Overvalued

EV/Revenue Valuation — Furnishings, Fixtures & Appliances

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Energy Focus, Inc.EFOI	22	5.9x	2.9x
Lulu's Fashion Lounge Holdings, Inc.LVLU	29	0.2x	0.1x
Rent the Runway, Inc.RENT	21	0.5x	0.6x
Good Times Restaurants Inc.GTIM	13	0.4x	0.5x
FGI Industries Ltd.FGI	12	0.3x	0.3x
Yunhong Green CTI Ltd.YHGJ	9	1.0x	—
HWH International Inc.HWH	6	6.0x	—
Worksport Ltd.WKSP	5	0.1x	1.1x
Industry Median		0.4x	0.5x
(*) Revenue		4	7
= Enterprise Value		1	4
(-) Net Debt		-1	-1
Equity Value		2	5
(/) Outstanding shares		6	6
Fair Price		$0	$1

Selected Fair Value (avg of trailing + forward)

$0.61

-84.4%