Fuel Tech, Inc.

FTEK

IndustrialsIndustrial - Pollution & Treatment ControlsNASDAQ

$1.52

Market Cap: $47.37M

Fuel Tech, Inc. (FTEK) Valuation Summary

Updated May 11, 2026 00:58

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.02 – $2.76	$0.51	-66.2%
Revenue DCF 10Y	$0.01 – $3.60	$1.06	-30.0%
▸ Trading Multiples
EV/Revenue	$0.72 – $8.94	$1.55	+2.3%

Valuation History

DCF Analysis

Fuel Tech, Inc. (FTEK) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$1.06

Market Price

$1.52

Upside / Downside

-30.0%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -13.8% to a target of 10.3% over 5 years, discounted at a WACC of 8.5%, Fuel Tech, Inc. (FTEK) has an intrinsic value of $1.06 per share (range: $0.01 – $3.60).

Key Assumptions

Current Operating Margin

-13.8%

Target Operating Margin

10.3%

WACC

8.5%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.3%

Target CapEx/Rev

6.0%

D&A/Revenue

2.0%

Tax Rate

20.6%

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	28	6.2%	-9.0%	-3	-3	1	(1)	2	-5	-4
2027	33	17.7%	-4.2%	-1	-1	1	(1)	1	-2	-2
2028	39	16.4%	0.7%	0	0	1	(1)	1	-1	-1
2029	45	16.7%	5.5%	2	2	1	(1)	1	0	0
2030	53	17.3%	10.3%	5	4	1	(2)	1	2	2
2031	54	2.5%	10.3%	6	4	1	(2)	0	3	2
2032	56	2.6%	10.3%	6	5	1	(3)	0	3	2
2033	57	2.7%	10.3%	6	5	1	(3)	0	3	1
2034	59	2.8%	10.3%	6	5	1	(3)	0	3	1
2035	61	2.9%	10.3%	6	5	1	(4)	0	2	1

Enterprise Value Bridge

Sum of PV(FCFF)2

Terminal Value (Gordon Growth at 3.0%)43

PV of Terminal Value20

Enterprise Value22

(–) Net Debt-11

Equity Value33

(÷) Shares Outstanding31

Fair Value per Share$1.06

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.3%	7.3%	10.3%	13.3%	16.3%
6.5%	$0	$1	$2	$3	$4
7.5%	$0	$1	$1	$2	$3
8.5%	$0	$0	$1	$2	$2
9.5%	$0	$0	$1	$1	$2
10.5%	$0	$0	$1	$1	$2

Current price: $1.52. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 16.5% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Fuel Tech, Inc. (FTEK) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$0.51

Market Price

$1.52

Upside / Downside

-66.2%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-13.8%

Target Operating Margin

10.3%

WACC

8.5%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.3%

Target CapEx/Rev

6.0%

D&A/Revenue

2.0%

Tax Rate

20.6%

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	28	6.2%	-9.0%	-3	-3	1	(1)	2	-5	-5
2027	33	17.7%	-4.2%	-1	-1	1	(1)	1	-3	-2
2028	39	16.4%	0.7%	0	0	1	(2)	1	-2	-1
2029	45	16.7%	5.5%	2	2	1	(2)	1	-0	-0
2030	53	17.3%	10.3%	5	4	1	(3)	1	1	1

Enterprise Value Bridge

Sum of PV(FCFF)-8

Terminal Value (Gordon Growth at 3.0%)18

PV of Terminal Value12

Enterprise Value5

(–) Net Debt-11

Equity Value16

(÷) Shares Outstanding31

Fair Value per Share$0.51

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.3%	7.3%	10.3%	13.3%	16.3%
6.5%	$-0	$0	$1	$2	$3
7.5%	$-0	$0	$1	$1	$2
8.5%	$-0	$0	$1	$1	$2
9.5%	$-0	$0	$0	$1	$1
10.5%	$-0	$0	$0	$1	$1

Current price: $1.52. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 16.5% 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

$1.55

Market Price

$1.52

Upside / Downside

+2.3%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Fuel Tech, Inc. (FTEK) has a fair value of $1.55 based on 7 comparable companies in the Industrial - Pollution & Treatment Controls industry.

EV/Revenue Valuation — Industrial - Pollution & Treatment Controls

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Fuel Tech, Inc.FTEK	47	1.3x	1.3x
Julong Holding Limited Class A Ordinary SharesJLHL	387	10.9x	—
Shimmick Corporation Common StockSHIM	206	0.4x	0.4x
Shengfeng Development LimitedSFWL	73	0.2x	—
CBAK Energy Technology, Inc.CBAT	70	0.5x	3.4x
Ocean Power Technologies, Inc.OPTT	63	9.9x	9.6x
XCHG Limited American Depositary ShareXCH	63	1.1x	1.6x
RYTHM, Inc.RYM	56	6.0x	1.3x
Industry Median		1.1x	1.6x
(*) Revenue		27	28
= Enterprise Value		29	44
(-) Net Debt		-11	-11
Equity Value		41	55
(/) Outstanding shares		31	31
Fair Price		$1	$2

Selected Fair Value (avg of trailing + forward)

$1.55

+2.3%

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

$0.02 – $2.76

$0.51

-66.2%

Revenue DCF 10Y

$0.01 – $3.60

$1.06

-30.0%

▸ Trading Multiples

EV/Revenue

$0.72 – $8.94

$1.55

+2.3%

DCF Analysis

Fuel Tech, Inc. (FTEK) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$1.06

Market Price

$1.52

Upside / Downside

-30.0%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-13.8%

Target Operating Margin

10.3%

WACC

8.5%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.3%

Target CapEx/Rev

6.0%

D&A/Revenue

2.0%

Tax Rate

20.6%

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	28	6.2%	-9.0%	-3	-3	1	(1)	2	-5	-4
2027	33	17.7%	-4.2%	-1	-1	1	(1)	1	-2	-2
2028	39	16.4%	0.7%	0	0	1	(1)	1	-1	-1
2029	45	16.7%	5.5%	2	2	1	(1)	1	0	0
2030	53	17.3%	10.3%	5	4	1	(2)	1	2	2
2031	54	2.5%	10.3%	6	4	1	(2)	0	3	2
2032	56	2.6%	10.3%	6	5	1	(3)	0	3	2
2033	57	2.7%	10.3%	6	5	1	(3)	0	3	1
2034	59	2.8%	10.3%	6	5	1	(3)	0	3	1
2035	61	2.9%	10.3%	6	5	1	(4)	0	2	1

Enterprise Value Bridge

Sum of PV(FCFF)2

Terminal Value (Gordon Growth at 3.0%)43

PV of Terminal Value20

Enterprise Value22

(–) Net Debt-11

Equity Value33

(÷) Shares Outstanding31

Fair Value per Share$1.06

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.3%	7.3%	10.3%	13.3%	16.3%
6.5%	$0	$1	$2	$3	$4
7.5%	$0	$1	$1	$2	$3
8.5%	$0	$0	$1	$2	$2
9.5%	$0	$0	$1	$1	$2
10.5%	$0	$0	$1	$1	$2

Current price: $1.52. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 16.5% 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

$1.55

Market Price

$1.52

Upside / Downside

+2.3%

Verdict

Undervalued

EV/Revenue Valuation — Industrial - Pollution & Treatment Controls

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Fuel Tech, Inc.FTEK	47	1.3x	1.3x
Julong Holding Limited Class A Ordinary SharesJLHL	387	10.9x	—
Shimmick Corporation Common StockSHIM	206	0.4x	0.4x
Shengfeng Development LimitedSFWL	73	0.2x	—
CBAK Energy Technology, Inc.CBAT	70	0.5x	3.4x
Ocean Power Technologies, Inc.OPTT	63	9.9x	9.6x
XCHG Limited American Depositary ShareXCH	63	1.1x	1.6x
RYTHM, Inc.RYM	56	6.0x	1.3x
Industry Median		1.1x	1.6x
(*) Revenue		27	28
= Enterprise Value		29	44
(-) Net Debt		-11	-11
Equity Value		41	55
(/) Outstanding shares		31	31
Fair Price		$1	$2

Selected Fair Value (avg of trailing + forward)

$1.55

+2.3%