Neuronetics, Inc.

STIM

HealthcareMedical - Diagnostics & ResearchNASDAQ

$1.84

Market Cap: $128.04M

Neuronetics, Inc. (STIM) Valuation Summary

Updated May 11, 2026 08:31

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.34 – $5.82	$0.34	-81.5%
Revenue DCF 10Y	$0.33 – $11.99	$2.44	+32.5%
▸ Trading Multiples
EV/Revenue	$0.34 – $21.41	$8.33	+352.5%

Valuation History

DCF Analysis

Neuronetics, Inc. (STIM) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$2.44

Market Price

$1.84

Upside / Downside

+32.5%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -21.1% to a target of 13.2% over 5 years, discounted at a WACC of 8.9%, Neuronetics, Inc. (STIM) has an intrinsic value of $2.44 per share (range: $0.33 – $11.99).

Key Assumptions

Current Operating Margin

-21.1%

Target Operating Margin

13.2%

WACC

8.9%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.0%

Target CapEx/Rev

6.0%

D&A/Revenue

2.5%

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	162	8.7%	-14.2%	-23	-23	4	(5)	25	-49	-47
2027	181	11.8%	-7.4%	-13	-13	4	(7)	4	-20	-17
2028	213	17.6%	-0.5%	-1	-1	5	(8)	7	-11	-9
2029	237	11.2%	6.3%	15	12	6	(10)	5	3	2
2030	263	10.9%	13.2%	35	27	6	(12)	6	16	11
2031	326	24.0%	13.2%	43	34	8	(16)	14	13	8
2032	390	19.8%	13.2%	51	41	10	(20)	14	16	9
2033	451	15.6%	13.2%	60	47	11	(24)	13	20	11
2034	503	11.4%	13.2%	66	52	12	(29)	11	25	12
2035	539	7.2%	13.2%	71	56	13	(32)	8	29	13

Enterprise Value Bridge

Sum of PV(FCFF)-8

Terminal Value (Gordon Growth at 3.0%)507

PV of Terminal Value225

Enterprise Value217

(–) Net Debt56

Equity Value161

(÷) Shares Outstanding66

Fair Value per Share$2.44

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
6.9%	$-1	$2	$5	$9	$12
7.9%	$-2	$1	$4	$6	$9
8.9%	$-2	$0	$2	$5	$7
9.9%	$-2	$-0	$2	$3	$5
10.9%	$-2	$-0	$1	$3	$4

Current price: $1.84. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 21.9% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Neuronetics, Inc. (STIM) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$0.34

Market Price

$1.84

Upside / Downside

-81.5%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-21.1%

Target Operating Margin

13.2%

WACC

8.9%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.0%

Target CapEx/Rev

6.0%

D&A/Revenue

2.5%

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	162	8.7%	-14.2%	-23	-23	4	(6)	25	-50	-48
2027	181	11.8%	-7.4%	-13	-13	4	(8)	4	-21	-18
2028	213	17.6%	-0.5%	-1	-1	5	(10)	7	-13	-11
2029	237	11.2%	6.3%	15	12	6	(13)	5	-0	-0
2030	263	10.9%	13.2%	35	27	6	(16)	6	12	8

Enterprise Value Bridge

Sum of PV(FCFF)-68

Terminal Value (Gordon Growth at 3.0%)216

PV of Terminal Value147

Enterprise Value79

(–) Net Debt56

Equity Value22

(÷) Shares Outstanding66

Fair Value per Share$0.34

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
6.9%	$-2	$-0	$2	$4	$6
7.9%	$-2	$-1	$1	$3	$4
8.9%	$-2	$-1	$0	$2	$3
9.9%	$-2	$-1	$-0	$1	$2
10.9%	$-2	$-1	$-0	$1	$2

Current price: $1.84. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 21.9% 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

$8.33

Market Price

$1.84

Upside / Downside

+352.5%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Neuronetics, Inc. (STIM) has a fair value of $8.33 based on 7 comparable companies in the Medical - Diagnostics & Research industry.

EV/Revenue Valuation — Medical - Diagnostics & Research

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Neuronetics, Inc.STIM	121	1.2x	1.1x
Perspective Therapeutics, Inc.CATX	277	188.5x	—
Codexis, Inc.CDXS	259	4.0x	3.8x
OraSure Technologies, Inc.OSUR	220	2.0x	1.3x
Profound Medical Corp.PROF	217	8.6x	4.6x
OmniAb, Inc.OABI	189	9.8x	6.3x
Atlantic International Corp.ATLN	119	0.4x	—
Sangamo Therapeutics, Inc.SGMO	42	0.5x	0.5x
Industry Median		4.0x	3.8x
(*) Revenue		149	162
= Enterprise Value		596	614
(-) Net Debt		56	56
Equity Value		540	558
(/) Outstanding shares		66	66
Fair Price		$8	$8

Selected Fair Value (avg of trailing + forward)

$8.33

+352.5%

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

$0.34 – $5.82

$0.34

-81.5%

Revenue DCF 10Y

$0.33 – $11.99

$2.44

+32.5%

▸ Trading Multiples

EV/Revenue

$0.34 – $21.41

$8.33

+352.5%

DCF Analysis

Neuronetics, Inc. (STIM) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$2.44

Market Price

$1.84

Upside / Downside

+32.5%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-21.1%

Target Operating Margin

13.2%

WACC

8.9%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.0%

Target CapEx/Rev

6.0%

D&A/Revenue

2.5%

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	162	8.7%	-14.2%	-23	-23	4	(5)	25	-49	-47
2027	181	11.8%	-7.4%	-13	-13	4	(7)	4	-20	-17
2028	213	17.6%	-0.5%	-1	-1	5	(8)	7	-11	-9
2029	237	11.2%	6.3%	15	12	6	(10)	5	3	2
2030	263	10.9%	13.2%	35	27	6	(12)	6	16	11
2031	326	24.0%	13.2%	43	34	8	(16)	14	13	8
2032	390	19.8%	13.2%	51	41	10	(20)	14	16	9
2033	451	15.6%	13.2%	60	47	11	(24)	13	20	11
2034	503	11.4%	13.2%	66	52	12	(29)	11	25	12
2035	539	7.2%	13.2%	71	56	13	(32)	8	29	13

Enterprise Value Bridge

Sum of PV(FCFF)-8

Terminal Value (Gordon Growth at 3.0%)507

PV of Terminal Value225

Enterprise Value217

(–) Net Debt56

Equity Value161

(÷) Shares Outstanding66

Fair Value per Share$2.44

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
6.9%	$-1	$2	$5	$9	$12
7.9%	$-2	$1	$4	$6	$9
8.9%	$-2	$0	$2	$5	$7
9.9%	$-2	$-0	$2	$3	$5
10.9%	$-2	$-0	$1	$3	$4

Current price: $1.84. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 21.9% 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

$8.33

Market Price

$1.84

Upside / Downside

+352.5%

Verdict

Undervalued

EV/Revenue Valuation — Medical - Diagnostics & Research

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Neuronetics, Inc.STIM	121	1.2x	1.1x
Perspective Therapeutics, Inc.CATX	277	188.5x	—
Codexis, Inc.CDXS	259	4.0x	3.8x
OraSure Technologies, Inc.OSUR	220	2.0x	1.3x
Profound Medical Corp.PROF	217	8.6x	4.6x
OmniAb, Inc.OABI	189	9.8x	6.3x
Atlantic International Corp.ATLN	119	0.4x	—
Sangamo Therapeutics, Inc.SGMO	42	0.5x	0.5x
Industry Median		4.0x	3.8x
(*) Revenue		149	162
= Enterprise Value		596	614
(-) Net Debt		56	56
Equity Value		540	558
(/) Outstanding shares		66	66
Fair Price		$8	$8

Selected Fair Value (avg of trailing + forward)

$8.33

+352.5%