GigaMedia Limited

GIGM

TechnologyElectronic Gaming & MultimediaNASDAQ

$1.44

Market Cap: $15.92M

GigaMedia Limited (GIGM) Valuation Summary

Updated Apr 6, 2026 22:26

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$2.18 – $2.54	$2.30	+60.9%
Revenue DCF 10Y	$2.19 – $2.45	$2.28	+59.4%
▸ Trading Multiples
EV/Revenue	$2.77 – $3.97	$62.38	+4262.5%

Valuation History

DCF Analysis

GigaMedia Limited (GIGM) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$2.28

Market Price

$1.44

Upside / Downside

+58.3%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -103.7% to a target of 10.0% over 5 years, discounted at a WACC of 9.0%, GigaMedia Limited (GIGM) has an intrinsic value of $2.28 per share (range: $2.19 – $2.45).

Key Assumptions

Current Operating Margin

-103.7%

Target Operating Margin

10.0%

WACC

9.0%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.1%

Target CapEx/Rev

6.0%

D&A/Revenue

0.8%

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	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	3	-10.0%	-80.9%	-3	-3	(0)	-0	-2	-2
2027	3	-10.0%	-58.2%	-2	-2	(0)	-0	-2	-1
2028	3	-10.0%	-35.5%	-1	-1	(0)	-0	-1	-1
2029	2	-10.0%	-12.8%	-0	-0	(0)	-0	-0	-0
2030	2	-10.0%	10.0%	0	0	(0)	-0	0	0
2031	2	-8.5%	10.0%	0	0	(0)	-0	0	0
2032	2	-6.2%	10.0%	0	0	(0)	-0	0	0
2033	2	-3.9%	10.0%	0	0	(0)	-0	0	0
2034	2	-1.6%	10.0%	0	0	(0)	-0	0	0
2035	2	0.7%	10.0%	0	0	(0)	0	0	0

Enterprise Value Bridge

Sum of PV(FCFF)-4

Terminal Value (Gordon Growth at 3.0%)1

PV of Terminal Value0

Enterprise Value-4

(–) Net Debt-29

Equity Value25

(÷) Shares Outstanding11

Fair Value per Share$2.28

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.0%	7.0%	10.0%	13.0%	16.0%
7.0%	$2	$2	$2	$2	$2
8.0%	$2	$2	$2	$2	$2
9.0%	$2	$2	$2	$2	$2
10.0%	$2	$2	$2	$2	$2
11.0%	$2	$2	$2	$2	$2

Current price: $1.44. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 9.5% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

GigaMedia Limited (GIGM) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$2.30

Market Price

$1.44

Upside / Downside

+59.7%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-103.7%

Target Operating Margin

10.0%

WACC

9.0%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.1%

Target CapEx/Rev

6.0%

D&A/Revenue

0.8%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	3	-10.0%	-80.9%	-3	-3	(0)	-0	-2	-2
2027	3	-10.0%	-58.2%	-2	-2	(0)	-0	-2	-1
2028	3	-10.0%	-35.5%	-1	-1	(0)	-0	-1	-1
2029	2	-10.0%	-12.8%	-0	-0	(0)	-0	-0	-0
2030	2	-10.0%	10.0%	0	0	(0)	-0	0	0

Enterprise Value Bridge

Sum of PV(FCFF)-5

Terminal Value (Gordon Growth at 3.0%)1

PV of Terminal Value1

Enterprise Value-4

(–) Net Debt-29

Equity Value25

(÷) Shares Outstanding11

Fair Value per Share$2.30

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.0%	7.0%	10.0%	13.0%	16.0%
7.0%	$2	$2	$2	$2	$3
8.0%	$2	$2	$2	$2	$2
9.0%	$2	$2	$2	$2	$2
10.0%	$2	$2	$2	$2	$2
11.0%	$2	$2	$2	$2	$2

Current price: $1.44. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 9.5% 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

$62.38

Market Price

$1.44

Upside / Downside

+4232.2%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), GigaMedia Limited (GIGM) has a fair value of $62.38 based on 6 comparable companies in the Electronic Gaming & Multimedia industry.

EV/Revenue Valuation — Electronic Gaming & Multimedia

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
GigaMedia LimitedGIGM	16	-3.8x	-0.0x
Dave Inc.DAVE	2,308	4.5x	6.7x
Motorsport Games Inc.MSGM	20	1.3x	1.5x
Intelligent Protection Management Corp.IPM	16	0.4x	1.0x
Gaxos.ai Inc.GXAI	9	4.3x	4.9x
ICZOOM Group Inc.IZM	7	0.1x	—
CXApp Inc.CXAI	4	1.3x	1.0x
Industry Median		1.3x	1.5x
(*) Revenue		3	895
= Enterprise Value		5	1,316
(-) Net Debt		-29	-29
Equity Value		34	1,345
(/) Outstanding shares		11	11
Fair Price		$3	$122

Selected Fair Value (avg of trailing + forward)

$62.38

+4232.2%

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

$2.18 – $2.54

$2.30

+60.9%

Revenue DCF 10Y

$2.19 – $2.45

$2.28

+59.4%

▸ Trading Multiples

EV/Revenue

$2.77 – $3.97

$62.38

+4262.5%

DCF Analysis

GigaMedia Limited (GIGM) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$2.28

Market Price

$1.44

Upside / Downside

+58.3%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-103.7%

Target Operating Margin

10.0%

WACC

9.0%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.1%

Target CapEx/Rev

6.0%

D&A/Revenue

0.8%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	3	-10.0%	-80.9%	-3	-3	(0)	-0	-2	-2
2027	3	-10.0%	-58.2%	-2	-2	(0)	-0	-2	-1
2028	3	-10.0%	-35.5%	-1	-1	(0)	-0	-1	-1
2029	2	-10.0%	-12.8%	-0	-0	(0)	-0	-0	-0
2030	2	-10.0%	10.0%	0	0	(0)	-0	0	0
2031	2	-8.5%	10.0%	0	0	(0)	-0	0	0
2032	2	-6.2%	10.0%	0	0	(0)	-0	0	0
2033	2	-3.9%	10.0%	0	0	(0)	-0	0	0
2034	2	-1.6%	10.0%	0	0	(0)	-0	0	0
2035	2	0.7%	10.0%	0	0	(0)	0	0	0

Enterprise Value Bridge

Sum of PV(FCFF)-4

Terminal Value (Gordon Growth at 3.0%)1

PV of Terminal Value0

Enterprise Value-4

(–) Net Debt-29

Equity Value25

(÷) Shares Outstanding11

Fair Value per Share$2.28

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.0%	7.0%	10.0%	13.0%	16.0%
7.0%	$2	$2	$2	$2	$2
8.0%	$2	$2	$2	$2	$2
9.0%	$2	$2	$2	$2	$2
10.0%	$2	$2	$2	$2	$2
11.0%	$2	$2	$2	$2	$2

Current price: $1.44. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 9.5% 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

$62.38

Market Price

$1.44

Upside / Downside

+4232.2%

Verdict

Undervalued

EV/Revenue Valuation — Electronic Gaming & Multimedia

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
GigaMedia LimitedGIGM	16	-3.8x	-0.0x
Dave Inc.DAVE	2,308	4.5x	6.7x
Motorsport Games Inc.MSGM	20	1.3x	1.5x
Intelligent Protection Management Corp.IPM	16	0.4x	1.0x
Gaxos.ai Inc.GXAI	9	4.3x	4.9x
ICZOOM Group Inc.IZM	7	0.1x	—
CXApp Inc.CXAI	4	1.3x	1.0x
Industry Median		1.3x	1.5x
(*) Revenue		3	895
= Enterprise Value		5	1,316
(-) Net Debt		-29	-29
Equity Value		34	1,345
(/) Outstanding shares		11	11
Fair Price		$3	$122

Selected Fair Value (avg of trailing + forward)

$62.38

+4232.2%