Natural Alternatives International, Inc.

NAII

Consumer DefensivePackaged FoodsNASDAQ

$2.67

Market Cap: $16.49M

Natural Alternatives International, Inc. (NAII) Valuation Summary

Updated Apr 20, 2026 22:16

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.79 – $382,273,638,446,976,960.00	$13.03	+372.2%
Revenue DCF 10Y	$1.31 – $286,353,409,978,476,930.00	$7.24	+162.2%
▸ Trading Multiples
EV/Revenue	-$4.13 – $25.00	$13.48	+388.4%

Valuation History

DCF Analysis

Natural Alternatives International, Inc. (NAII) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$7.24

Market Price

$2.67

Upside / Downside

+171.2%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -6.7% to a target of 7.6% over 5 years, discounted at a WACC of 5.0%, Natural Alternatives International, Inc. (NAII) has an intrinsic value of $7.24 per share (range: $1.31 – $286,353,409,978,476,930.00).

Key Assumptions

Current Operating Margin

-6.7%

Target Operating Margin

7.6%

WACC

5.0%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

6.5%

Target CapEx/Rev

6.0%

D&A/Revenue

3.0%

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)
2025	121	-6.7%	-3.8%	-5	-5	4	(8)	0	-9	-9
2026	114	-5.7%	-1.0%	-1	-1	3	(7)	-1	-4	-3
2027	109	-4.7%	1.9%	2	2	3	(7)	-1	-1	-1
2028	105	-3.8%	4.7%	5	4	3	(7)	-1	1	1
2029	102	-2.8%	7.6%	8	6	3	(6)	-1	3	3
2030	100	-1.8%	7.6%	8	6	3	(6)	-0	3	2
2031	99	-0.9%	7.6%	8	6	3	(6)	-0	3	2
2032	99	0.1%	7.6%	8	6	3	(6)	0	3	2
2033	100	1.1%	7.6%	8	6	3	(6)	0	3	2
2034	102	2.0%	7.6%	8	6	3	(6)	0	3	2

Enterprise Value Bridge

Sum of PV(FCFF)1

Terminal Value (Gordon Growth at 3.0%)140

PV of Terminal Value88

Enterprise Value90

(–) Net Debt47

Equity Value43

(÷) Shares Outstanding6

Fair Value per Share$7.24

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.6%	4.6%	7.6%	10.6%	13.6%
3.0%	$-13	$10968445545628226	$102763433689911200	$194558421834194048	$286353409978476928
4.0%	$-13	$-7	$25	$57	$89
5.0%	$-13	$-9	$7	$23	$39
6.0%	$-13	$-9	$1	$12	$22
7.0%	$-13	$-10	$-2	$6	$14

Current price: $2.67. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 20.3% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Natural Alternatives International, Inc. (NAII) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$13.03

Market Price

$2.67

Upside / Downside

+388.0%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -6.7% to a target of 7.6% over 5 years, discounted at a WACC of 5.0%, Natural Alternatives International, Inc. (NAII) has an intrinsic value of $13.03 per share (range: $0.79 – $382,273,638,446,976,960.00).

Key Assumptions

Current Operating Margin

-6.7%

Target Operating Margin

7.6%

WACC

5.0%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

6.5%

Target CapEx/Rev

6.0%

D&A/Revenue

3.0%

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)
2025	122	-5.9%	-3.8%	-5	-5	4	(8)	0	-9	-9
2026	117	-4.1%	-1.0%	-1	-1	4	(7)	-1	-4	-4
2027	114	-2.3%	1.9%	2	2	3	(7)	-1	-1	-1
2028	114	-0.6%	4.7%	5	4	3	(7)	-0	1	1
2029	115	1.2%	7.6%	9	7	4	(7)	0	3	3

Enterprise Value Bridge

Sum of PV(FCFF)-10

Terminal Value (Gordon Growth at 3.0%)168

PV of Terminal Value135

Enterprise Value124

(–) Net Debt47

Equity Value78

(÷) Shares Outstanding6

Fair Value per Share$13.03

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.6%	4.6%	7.6%	10.6%	13.6%
3.0%	$-12	$22334935136668576	$142314502906771392	$262294070676874272	$382273638446976960
4.0%	$-12	$-3	$38	$79	$120
5.0%	$-12	$-7	$13	$33	$54
6.0%	$-12	$-9	$5	$18	$32
7.0%	$-12	$-9	$1	$11	$21

Current price: $2.67. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 20.3% 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

$13.48

Market Price

$2.67

Upside / Downside

+404.9%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Natural Alternatives International, Inc. (NAII) has a fair value of $13.48 based on 6 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
Natural Alternatives International, Inc.NAII	16	0.5x	—
Forafric Global PLCAFRI	259	1.5x	—
Skillful Craftsman Education Technology LimitedEDTK	16	17.2x	—
Marwynn Holdings, Inc. Common stockMWYN	10	1.2x	—
Mannatech, IncorporatedMTEX	10	0.1x	—
Bon Natural Life LimitedBON	8	0.8x	0.4x
Healthy Choice Wellness Corp.HCWC	5	0.2x	0.2x
Industry Median		1.0x	0.3x
(*) Revenue		130
= Enterprise Value		127
(-) Net Debt		47
Equity Value		80
(/) Outstanding shares		6
Fair Price		$13

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

$0.79 – $382,273,638,446,976,960.00

$13.03

+372.2%

Revenue DCF 10Y

$1.31 – $286,353,409,978,476,930.00

$7.24

+162.2%

▸ Trading Multiples

EV/Revenue

-$4.13 – $25.00

$13.48

+388.4%

DCF Analysis

Natural Alternatives International, Inc. (NAII) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$7.24

Market Price

$2.67

Upside / Downside

+171.2%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-6.7%

Target Operating Margin

7.6%

WACC

5.0%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

6.5%

Target CapEx/Rev

6.0%

D&A/Revenue

3.0%

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)
2025	121	-6.7%	-3.8%	-5	-5	4	(8)	0	-9	-9
2026	114	-5.7%	-1.0%	-1	-1	3	(7)	-1	-4	-3
2027	109	-4.7%	1.9%	2	2	3	(7)	-1	-1	-1
2028	105	-3.8%	4.7%	5	4	3	(7)	-1	1	1
2029	102	-2.8%	7.6%	8	6	3	(6)	-1	3	3
2030	100	-1.8%	7.6%	8	6	3	(6)	-0	3	2
2031	99	-0.9%	7.6%	8	6	3	(6)	-0	3	2
2032	99	0.1%	7.6%	8	6	3	(6)	0	3	2
2033	100	1.1%	7.6%	8	6	3	(6)	0	3	2
2034	102	2.0%	7.6%	8	6	3	(6)	0	3	2

Enterprise Value Bridge

Sum of PV(FCFF)1

Terminal Value (Gordon Growth at 3.0%)140

PV of Terminal Value88

Enterprise Value90

(–) Net Debt47

Equity Value43

(÷) Shares Outstanding6

Fair Value per Share$7.24

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.6%	4.6%	7.6%	10.6%	13.6%
3.0%	$-13	$10968445545628226	$102763433689911200	$194558421834194048	$286353409978476928
4.0%	$-13	$-7	$25	$57	$89
5.0%	$-13	$-9	$7	$23	$39
6.0%	$-13	$-9	$1	$12	$22
7.0%	$-13	$-10	$-2	$6	$14

Current price: $2.67. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 20.3% 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

$13.48

Market Price

$2.67

Upside / Downside

+404.9%

Verdict

Undervalued

EV/Revenue Valuation — Packaged Foods

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Natural Alternatives International, Inc.NAII	16	0.5x	—
Forafric Global PLCAFRI	259	1.5x	—
Skillful Craftsman Education Technology LimitedEDTK	16	17.2x	—
Marwynn Holdings, Inc. Common stockMWYN	10	1.2x	—
Mannatech, IncorporatedMTEX	10	0.1x	—
Bon Natural Life LimitedBON	8	0.8x	0.4x
Healthy Choice Wellness Corp.HCWC	5	0.2x	0.2x
Industry Median		1.0x	0.3x
(*) Revenue		130
= Enterprise Value		127
(-) Net Debt		47
Equity Value		80
(/) Outstanding shares		6
Fair Price		$13