Lantronix, Inc.

LTRX

TechnologyCommunication EquipmentNASDAQ

$6.16

Market Cap: $244.50M

Lantronix, Inc. (LTRX) Valuation Summary

Updated Apr 9, 2026 22:18

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	—	N/A	—
Revenue DCF 10Y	$0.35 – $12.94	$3.06	-44.4%
▸ Trading Multiples
EV/Revenue	$4.50 – $16.76	$8.58	+56.0%

Valuation History

DCF Analysis

Lantronix, Inc. (LTRX) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$3.06

Market Price

$6.16

Upside / Downside

-50.3%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -8.9% to a target of 9.9% over 5 years, discounted at a WACC of 8.7%, Lantronix, Inc. (LTRX) has an intrinsic value of $3.06 per share (range: $0.35 – $12.94).

Key Assumptions

Current Operating Margin

-8.9%

Target Operating Margin

9.9%

WACC

8.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.2%

Target CapEx/Rev

7.8%

D&A/Revenue

5.2%

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	122	-0.6%	-5.2%	-6	-6	6	(2)	3	-6	-5
2027	142	15.9%	-1.4%	-2	-2	7	(4)	7	-5	-5
2028	160	13.3%	2.4%	4	3	8	(5)	7	-1	-1
2029	185	15.6%	6.2%	11	9	10	(7)	9	2	2
2030	212	14.5%	9.9%	21	17	11	(10)	10	8	6
2031	239	12.6%	9.9%	24	19	12	(12)	10	9	6
2032	265	10.7%	9.9%	26	21	14	(15)	9	10	6
2033	288	8.8%	9.9%	29	23	15	(19)	8	10	6
2034	307	6.8%	9.9%	31	24	16	(22)	7	11	5
2035	323	4.9%	9.9%	32	25	17	(25)	6	11	5

Enterprise Value Bridge

Sum of PV(FCFF)24

Terminal Value (Gordon Growth at 3.0%)208

PV of Terminal Value95

Enterprise Value119

(–) Net Debt1

Equity Value118

(÷) Shares Outstanding39

Fair Value per Share$3.06

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	3.9%	6.9%	9.9%	12.9%	15.9%
6.7%	$-1	$1	$5	$9	$13
7.6%	$-1	$1	$4	$7	$10
8.7%	$-1	$1	$3	$5	$8
9.7%	$-1	$0	$2	$4	$6
10.7%	$-1	$0	$2	$4	$5

Current price: $6.16. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 36.5% 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

$8.58

Market Price

$6.16

Upside / Downside

+39.3%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Lantronix, Inc. (LTRX) has a fair value of $8.58 based on 8 comparable companies in the Communication Equipment industry.

EV/Revenue Valuation — Communication Equipment

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Lantronix, Inc.LTRX	238	1.9x	1.9x
AXT, Inc.AXTI	2,774	30.7x	34.3x
Inseego Corp.INSG	213	1.4x	1.2x
Ceragon Networks Ltd.CRNT	210	0.7x	0.6x
Tucows Inc.TCX	192	2.1x	2.6x
Datavault AI Inc.DVLT	185	5.1x	81.0x
Waldencast plcWALD	127	0.9x	1.0x
KULR Technology Group, Inc.KULR	97	5.3x	8.7x
Sequans Communications S.A.SQNS	39	3.5x	2.6x
Industry Median		2.8x	2.6x
(*) Revenue		123	123
= Enterprise Value		346	319
(-) Net Debt		1	1
Equity Value		345	318
(/) Outstanding shares		39	39
Fair Price		$9	$8

Selected Fair Value (avg of trailing + forward)

$8.58

+39.3%

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

—

N/A

—

Revenue DCF 10Y

$0.35 – $12.94

$3.06

-44.4%

▸ Trading Multiples

EV/Revenue

$4.50 – $16.76

$8.58

+56.0%

DCF Analysis

Lantronix, Inc. (LTRX) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$3.06

Market Price

$6.16

Upside / Downside

-50.3%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-8.9%

Target Operating Margin

9.9%

WACC

8.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.2%

Target CapEx/Rev

7.8%

D&A/Revenue

5.2%

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	122	-0.6%	-5.2%	-6	-6	6	(2)	3	-6	-5
2027	142	15.9%	-1.4%	-2	-2	7	(4)	7	-5	-5
2028	160	13.3%	2.4%	4	3	8	(5)	7	-1	-1
2029	185	15.6%	6.2%	11	9	10	(7)	9	2	2
2030	212	14.5%	9.9%	21	17	11	(10)	10	8	6
2031	239	12.6%	9.9%	24	19	12	(12)	10	9	6
2032	265	10.7%	9.9%	26	21	14	(15)	9	10	6
2033	288	8.8%	9.9%	29	23	15	(19)	8	10	6
2034	307	6.8%	9.9%	31	24	16	(22)	7	11	5
2035	323	4.9%	9.9%	32	25	17	(25)	6	11	5

Enterprise Value Bridge

Sum of PV(FCFF)24

Terminal Value (Gordon Growth at 3.0%)208

PV of Terminal Value95

Enterprise Value119

(–) Net Debt1

Equity Value118

(÷) Shares Outstanding39

Fair Value per Share$3.06

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	3.9%	6.9%	9.9%	12.9%	15.9%
6.7%	$-1	$1	$5	$9	$13
7.6%	$-1	$1	$4	$7	$10
8.7%	$-1	$1	$3	$5	$8
9.7%	$-1	$0	$2	$4	$6
10.7%	$-1	$0	$2	$4	$5

Current price: $6.16. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 36.5% 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

$8.58

Market Price

$6.16

Upside / Downside

+39.3%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Lantronix, Inc. (LTRX) has a fair value of $8.58 based on 8 comparable companies in the Communication Equipment industry.

EV/Revenue Valuation — Communication Equipment

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Lantronix, Inc.LTRX	238	1.9x	1.9x
AXT, Inc.AXTI	2,774	30.7x	34.3x
Inseego Corp.INSG	213	1.4x	1.2x
Ceragon Networks Ltd.CRNT	210	0.7x	0.6x
Tucows Inc.TCX	192	2.1x	2.6x
Datavault AI Inc.DVLT	185	5.1x	81.0x
Waldencast plcWALD	127	0.9x	1.0x
KULR Technology Group, Inc.KULR	97	5.3x	8.7x
Sequans Communications S.A.SQNS	39	3.5x	2.6x
Industry Median		2.8x	2.6x
(*) Revenue		123	123
= Enterprise Value		346	319
(-) Net Debt		1	1
Equity Value		345	318
(/) Outstanding shares		39	39
Fair Price		$9	$8

Selected Fair Value (avg of trailing + forward)

$8.58

+39.3%