Farmer Bros. Co.

FARM

Consumer DefensivePackaged FoodsNASDAQ

$1.28

Market Cap: $28.09M

Farmer Bros. Co. (FARM) Valuation Summary

Updated May 10, 2026 21:57

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.56 – $16.65	$1.45	+13.2%
Revenue DCF 10Y	$2.70 – $20.94	$4.00	+212.3%
▸ Trading Multiples
EV/Revenue	$4.29 – $97.21	$39.43	+2980.1%

Valuation History

DCF Analysis

Farmer Bros. Co. (FARM) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$4.00

Market Price

$1.28

Upside / Downside

+212.3%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -0.4% to a target of 7.6% over 5 years, discounted at a WACC of 10.5%, Farmer Bros. Co. (FARM) has an intrinsic value of $4.00 per share (range: $2.70 – $20.94).

Key Assumptions

Current Operating Margin

-0.4%

Target Operating Margin

7.6%

WACC

10.5%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

4.4%

Target CapEx/Rev

9.4%

D&A/Revenue

6.3%

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	335	-2.3%	1.2%	4	3	21	(16)	15	-7	-7
2027	336	0.6%	2.8%	9	7	21	(18)	0	10	9
2028	360	6.9%	4.4%	16	12	23	(21)	4	10	8
2029	385	6.9%	6.0%	23	18	24	(25)	4	14	10
2030	411	6.9%	7.6%	31	25	26	(28)	4	18	12
2031	437	6.3%	7.6%	33	26	27	(32)	4	17	10
2032	461	5.6%	7.6%	35	28	29	(36)	4	16	9
2033	484	5.0%	7.6%	37	29	30	(41)	4	15	7
2034	505	4.3%	7.6%	38	30	32	(45)	3	14	6
2035	524	3.6%	7.6%	40	31	33	(49)	3	12	5

Enterprise Value Bridge

Sum of PV(FCFF)68

Terminal Value (Gordon Growth at 3.0%)167

PV of Terminal Value64

Enterprise Value132

(–) Net Debt47

Equity Value86

(÷) Shares Outstanding21

Fair Value per Share$4.00

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.6%	4.6%	7.6%	10.6%	13.6%
8.5%	$-4	$-1	$6	$14	$21
9.5%	$-3	$-1	$5	$11	$17
10.5%	$-3	$-1	$4	$9	$14
11.5%	$-3	$-1	$3	$8	$12
12.5%	$-3	$-1	$3	$7	$11

Current price: $1.28. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 15.5% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Farmer Bros. Co. (FARM) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$1.45

Market Price

$1.28

Upside / Downside

+13.2%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-0.4%

Target Operating Margin

7.6%

WACC

10.5%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

4.4%

Target CapEx/Rev

9.4%

D&A/Revenue

6.3%

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	335	-2.3%	1.2%	4	3	21	(18)	15	-9	-8
2027	336	0.6%	2.8%	9	7	21	(21)	0	7	6
2028	360	6.9%	4.4%	16	12	23	(27)	4	5	4
2029	385	6.9%	6.0%	23	18	24	(32)	4	6	4
2030	411	6.9%	7.6%	31	25	26	(39)	4	8	5

Enterprise Value Bridge

Sum of PV(FCFF)11

Terminal Value (Gordon Growth at 3.0%)105

PV of Terminal Value67

Enterprise Value78

(–) Net Debt47

Equity Value31

(÷) Shares Outstanding21

Fair Value per Share$1.45

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.6%	4.6%	7.6%	10.6%	13.6%
8.5%	$-4	$-3	$3	$10	$17
9.5%	$-4	$-3	$2	$8	$14
10.5%	$-4	$-3	$1	$6	$11
11.5%	$-3	$-3	$1	$5	$9
12.5%	$-3	$-3	$1	$4	$8

Current price: $1.28. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 15.5% 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

$39.43

Market Price

$1.28

Upside / Downside

+2980.1%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Farmer Bros. Co. (FARM) has a fair value of $39.43 based on 5 comparable companies in the Packaged Foods industry.

EV/Revenue Valuation — Packaged Foods

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Farmer Bros. Co.FARM	27	0.2x	0.2x
BranchOut Food Inc.BOF	50	4.0x	—
Ruanyun Edai Technology Inc. Ordinary sharesRYET	38	6.2x	—
Coffee Holding Co., Inc.JVA	25	0.3x	0.4x
Bonk, Inc.BNKK	13	25.6x	—
CIMG Inc.IMG	2	0.4x	1.3x
Industry Median		4.0x	0.9x
(*) Revenue		342	464
= Enterprise Value		1,386	394
(-) Net Debt		47	47
Equity Value		1,339	348
(/) Outstanding shares		21	21
Fair Price		$63	$16

Selected Fair Value (avg of trailing + forward)

$39.43

+2980.1%

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

$0.56 – $16.65

$1.45

+13.2%

Revenue DCF 10Y

$2.70 – $20.94

$4.00

+212.3%

▸ Trading Multiples

EV/Revenue

$4.29 – $97.21

$39.43

+2980.1%

DCF Analysis

Farmer Bros. Co. (FARM) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$4.00

Market Price

$1.28

Upside / Downside

+212.3%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-0.4%

Target Operating Margin

7.6%

WACC

10.5%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

4.4%

Target CapEx/Rev

9.4%

D&A/Revenue

6.3%

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	335	-2.3%	1.2%	4	3	21	(16)	15	-7	-7
2027	336	0.6%	2.8%	9	7	21	(18)	0	10	9
2028	360	6.9%	4.4%	16	12	23	(21)	4	10	8
2029	385	6.9%	6.0%	23	18	24	(25)	4	14	10
2030	411	6.9%	7.6%	31	25	26	(28)	4	18	12
2031	437	6.3%	7.6%	33	26	27	(32)	4	17	10
2032	461	5.6%	7.6%	35	28	29	(36)	4	16	9
2033	484	5.0%	7.6%	37	29	30	(41)	4	15	7
2034	505	4.3%	7.6%	38	30	32	(45)	3	14	6
2035	524	3.6%	7.6%	40	31	33	(49)	3	12	5

Enterprise Value Bridge

Sum of PV(FCFF)68

Terminal Value (Gordon Growth at 3.0%)167

PV of Terminal Value64

Enterprise Value132

(–) Net Debt47

Equity Value86

(÷) Shares Outstanding21

Fair Value per Share$4.00

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.6%	4.6%	7.6%	10.6%	13.6%
8.5%	$-4	$-1	$6	$14	$21
9.5%	$-3	$-1	$5	$11	$17
10.5%	$-3	$-1	$4	$9	$14
11.5%	$-3	$-1	$3	$8	$12
12.5%	$-3	$-1	$3	$7	$11

Current price: $1.28. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 15.5% 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

$39.43

Market Price

$1.28

Upside / Downside

+2980.1%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Farmer Bros. Co. (FARM) has a fair value of $39.43 based on 5 comparable companies in the Packaged Foods industry.

EV/Revenue Valuation — Packaged Foods

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Farmer Bros. Co.FARM	27	0.2x	0.2x
BranchOut Food Inc.BOF	50	4.0x	—
Ruanyun Edai Technology Inc. Ordinary sharesRYET	38	6.2x	—
Coffee Holding Co., Inc.JVA	25	0.3x	0.4x
Bonk, Inc.BNKK	13	25.6x	—
CIMG Inc.IMG	2	0.4x	1.3x
Industry Median		4.0x	0.9x
(*) Revenue		342	464
= Enterprise Value		1,386	394
(-) Net Debt		47	47
Equity Value		1,339	348
(/) Outstanding shares		21	21
Fair Price		$63	$16

Selected Fair Value (avg of trailing + forward)

$39.43

+2980.1%