Rocky Mountain Chocolate Factory, Inc.

RMCF

Consumer DefensiveFood ConfectionersNASDAQ

$2.55

Market Cap: $19.76M

Rocky Mountain Chocolate Factory, Inc. (RMCF) Valuation Summary

Updated Apr 6, 2026 22:28

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	—	N/A	—
Revenue DCF 10Y	$0.25 – $20.20	$0.25	-88.7%
▸ Trading Multiples
EV/Revenue	$0.88 – $2.25	$1.12	-50.1%

Valuation History

DCF Analysis

Rocky Mountain Chocolate Factory, Inc. (RMCF) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$0.25

Market Price

$2.55

Upside / Downside

-90.2%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -20.1% to a target of 7.6% over 5 years, discounted at a WACC of 6.7%, Rocky Mountain Chocolate Factory, Inc. (RMCF) has an intrinsic value of $0.25 per share (range: $0.25 – $20.20).

Key Assumptions

Current Operating Margin

-20.1%

Target Operating Margin

7.6%

WACC

6.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

6.2%

Target CapEx/Rev

6.0%

D&A/Revenue

3.0%

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	32	7.5%	-14.6%	-5	-5	1	(2)	2	-8	-7
2027	34	7.1%	-9.0%	-3	-3	1	(2)	0	-5	-4
2028	36	6.6%	-3.5%	-1	-1	1	(2)	0	-3	-2
2029	39	6.2%	2.1%	1	1	1	(2)	0	-1	-1
2030	41	5.7%	7.6%	3	2	1	(2)	0	1	1
2031	43	5.3%	7.6%	3	3	1	(3)	0	1	1
2032	45	4.8%	7.6%	3	3	1	(3)	0	1	1
2033	47	4.4%	7.6%	4	3	1	(3)	0	1	1
2034	49	3.9%	7.6%	4	3	1	(3)	0	1	1
2035	50	3.5%	7.6%	4	3	2	(3)	0	1	1

Enterprise Value Bridge

Sum of PV(FCFF)-11

Terminal Value (Gordon Growth at 3.0%)35

PV of Terminal Value19

Enterprise Value8

(–) Net Debt6

Equity Value2

(÷) Shares Outstanding7

Fair Value per Share$0.25

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.6%	4.6%	7.6%	10.6%	13.6%
4.7%	$-4	$-3	$5	$12	$20
5.7%	$-4	$-3	$2	$6	$11
6.7%	$-4	$-3	$0	$4	$7
7.6%	$-4	$-3	$-1	$2	$5
8.7%	$-4	$-3	$-1	$1	$3

Current price: $2.55. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 16.3% 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

$1.12

Market Price

$2.55

Upside / Downside

-56.2%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Rocky Mountain Chocolate Factory, Inc. (RMCF) has a fair value of $1.12 based on 5 comparable companies in the Food Confectioners industry.

EV/Revenue Valuation — Food Confectioners

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Rocky Mountain Chocolate Factory, Inc.RMCF	18	0.8x	—
Natural Alternatives International, Inc.NAII	17	0.5x	—
Marwynn Holdings, Inc. Common stockMWYN	12	1.4x	—
Bon Natural Life LimitedBON	8	0.8x	0.4x
Healthy Choice Wellness Corp.HCWC	4	0.2x	0.2x
Maison Solutions Inc. Class A Common StockMSS	3	0.4x	0.4x
Industry Median		0.5x	0.4x
(*) Revenue		30
= Enterprise Value		14
(-) Net Debt		6
Equity Value		8
(/) Outstanding shares		7
Fair Price		$1

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

$0.25 – $20.20

$0.25

-88.7%

▸ Trading Multiples

EV/Revenue

$0.88 – $2.25

$1.12

-50.1%

DCF Analysis

Rocky Mountain Chocolate Factory, Inc. (RMCF) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$0.25

Market Price

$2.55

Upside / Downside

-90.2%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-20.1%

Target Operating Margin

7.6%

WACC

6.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

6.2%

Target CapEx/Rev

6.0%

D&A/Revenue

3.0%

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	32	7.5%	-14.6%	-5	-5	1	(2)	2	-8	-7
2027	34	7.1%	-9.0%	-3	-3	1	(2)	0	-5	-4
2028	36	6.6%	-3.5%	-1	-1	1	(2)	0	-3	-2
2029	39	6.2%	2.1%	1	1	1	(2)	0	-1	-1
2030	41	5.7%	7.6%	3	2	1	(2)	0	1	1
2031	43	5.3%	7.6%	3	3	1	(3)	0	1	1
2032	45	4.8%	7.6%	3	3	1	(3)	0	1	1
2033	47	4.4%	7.6%	4	3	1	(3)	0	1	1
2034	49	3.9%	7.6%	4	3	1	(3)	0	1	1
2035	50	3.5%	7.6%	4	3	2	(3)	0	1	1

Enterprise Value Bridge

Sum of PV(FCFF)-11

Terminal Value (Gordon Growth at 3.0%)35

PV of Terminal Value19

Enterprise Value8

(–) Net Debt6

Equity Value2

(÷) Shares Outstanding7

Fair Value per Share$0.25

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	1.6%	4.6%	7.6%	10.6%	13.6%
4.7%	$-4	$-3	$5	$12	$20
5.7%	$-4	$-3	$2	$6	$11
6.7%	$-4	$-3	$0	$4	$7
7.6%	$-4	$-3	$-1	$2	$5
8.7%	$-4	$-3	$-1	$1	$3

Current price: $2.55. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 16.3% 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

$1.12

Market Price

$2.55

Upside / Downside

-56.2%

Verdict

Overvalued

EV/Revenue Valuation — Food Confectioners

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Rocky Mountain Chocolate Factory, Inc.RMCF	18	0.8x	—
Natural Alternatives International, Inc.NAII	17	0.5x	—
Marwynn Holdings, Inc. Common stockMWYN	12	1.4x	—
Bon Natural Life LimitedBON	8	0.8x	0.4x
Healthy Choice Wellness Corp.HCWC	4	0.2x	0.2x
Maison Solutions Inc. Class A Common StockMSS	3	0.4x	0.4x
Industry Median		0.5x	0.4x
(*) Revenue		30
= Enterprise Value		14
(-) Net Debt		6
Equity Value		8
(/) Outstanding shares		7
Fair Price		$1