Using an unlevered Free Cash Flow to Firm (FCFF) model, we project RF Industries, Ltd.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 7.5% to 8.8% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 67, DPO 27, DIO 109). At a 7.8% WACC with mid-year discounting, the terminal value (148% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 15.6x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $0.12 per share, suggesting RFIL is overvalued by 99.3% at the current price of $16.95.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 1 | 1 | 1 | 1 | 2 | 2 |
| (−) Net Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| (+) D&A | 1 | 2 | 1 | 1 | 1 | 1 |
| EBITDA | 3 | 3 | 3 | 3 | 3 | 3 |
| (−) Tax | 0 | 0 | 0 | 1 | 1 | — |
| (−) CapEx | 1 | 2 | 2 | 2 | 2 | — |
| (−) ΔWC | 5 | 2 | 3 | 3 | 3 | — |
| Free Cash Flow (FCF) | -4 | -1 | -2 | -3 | -3 | — |
| Peers' EBITDA Multiple | 15.6x | |||||
| Terminal Value | 49 | |||||
| WACC / Discount Rate | 7.78% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | -4 | -1 | -2 | -2 | -2 | 34 |
| Enterprise Value | 23 | |||||
| Projection Period | -11 | -48.1% | ||||
| Terminal Value | 34 | 148.1% | ||||
| (−) Current Net Debt | 22 | |||||
| Equity Value | 1 | |||||
| (÷) Outstanding Shares | 11M | |||||
| Fair Price | $0 | -99.3% | ||||
| WACC \ EV/EBITDA Exit Multiple | 11.6x | 13.6x | 15.6x | 17.6x | 19.6x |
|---|---|---|---|---|---|
| 5.8% | $0 | $0 | $0 | $1 | $1 |
| 6.8% | $0 | $0 | $0 | $1 | $1 |
| 7.8% | $0 | $0 | $0 | $1 | $1 |
| 8.8% | $0 | $0 | $0 | $0 | $1 |
| 9.8% | $0 | $0 | $0 | $0 | $1 |
Current price: $16.95. Green = undervalued, Red = overvalued.
Based on default parameters
Using the industry peer median P/E Multiples multiple (trailing + forward), RF Industries, Ltd. (RFIL) has a fair value of $0.23 based on 3 comparable companies in the Electrical Equipment & Parts industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| RF Industries, Ltd.RFIL | 183 | 2421.4x | — |
| Julong Holding Limited Class A Ordinary Shares | 120 | 32.6x | — |
| CBAK Energy Technology, Inc. | 72 | 6.2x | — |
| Mastech Digital, Inc. | 70 | 116.3x | — |
| Industry Median | 32.6x | — | |
| (*) Profit after tax | 0 | ||
| Equity Value | 2 | ||
| (/) Outstanding shares | 11 | ||
| Fair Price | $0 | ||
Using the industry peer median EV/EBITDA multiple (trailing + forward), RF Industries, Ltd. (RFIL) has a fair value of $4.88 based on 2 comparable companies in the Electrical Equipment & Parts industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/EBITDA | Forward EV/EBITDA | |
|---|---|---|---|
| RF Industries, Ltd.RFIL | 183 | 62.3x | 68.8x |
| Julong Holding Limited Class A Ordinary Shares | 120 | 26.1x | — |
| CBAK Energy Technology, Inc. | 72 | 5.1x | 32.7x |
| Industry Median | 15.6x | 32.7x | |
| (*) EBITDA | 3 | 3 | |
| = Enterprise Value | 51 | 97 | |
| (-) Net Debt | 22 | 22 | |
| Equity Value | 30 | 75 | |
| (/) Outstanding shares | 11 | 11 | |
| Fair Price | $3 | $7 | |
Using the industry peer median EV/Revenue multiple (trailing + forward), RF Industries, Ltd. (RFIL) has a fair value of $6.54 based on 8 comparable companies in the Electrical Equipment & Parts industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/Revenue | Forward EV/Revenue | |
|---|---|---|---|
| RF Industries, Ltd.RFIL | 183 | 2.5x | 2.8x |
| Shimmick Corporation Common Stock | 137 | 0.3x | 0.3x |
| Julong Holding Limited Class A Ordinary Shares | 120 | 3.2x | — |
| CBAK Energy Technology, Inc. | 72 | 0.5x | 3.5x |
| Mastech Digital, Inc. | 70 | 0.2x | 0.2x |
| Ocean Power Technologies, Inc. | 68 | 10.7x | 10.3x |
| XCHG Limited American Depositary Share | 67 | 1.2x | 1.7x |
| RYTHM, Inc. | 54 | 5.9x | 1.3x |
| Fuel Tech, Inc. | 38 | 1.0x | 0.9x |
| Industry Median | 1.1x | 1.3x | |
| (*) Revenue | 81 | 73 | |
| = Enterprise Value | 89 | 95 | |
| (-) Net Debt | 22 | 22 | |
| Equity Value | 67 | 74 | |
| (/) Outstanding shares | 11 | 11 | |
| Fair Price | $6 | $7 | |
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.