DCF Valuation
Aehr Test Systems (AEHR) DCF Valuation — Is AEHR overvalued?
The estimated DCF fair value of one Aehr Test Systems (AEHR) share is $5.26. Compared to the current market price of $98.78, the stock is overvalued by 94.7%.
DCF fair value
$5.26
Market price
$98.78
Upside / downside
−94.7%
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Aehr Test Systems (AEHR) DCF valuation FAQ
What is the DCF fair value of Aehr Test Systems (AEHR)?
The discounted-cash-flow model estimates the intrinsic fair value of one Aehr Test Systems (AEHR) share at $5.26, based on a 10-year projection of its cash flows converging to Damodaran industry averages.
Is Aehr Test Systems (AEHR) overvalued or undervalued?
Against the current market price of $98.78, the DCF fair value of $5.26 implies AEHR is overvalued by 94.7%.
How is the AEHR DCF value calculated?
It is a 10-year discounted-cash-flow estimate built from Aehr Test Systems's reported fundamentals, with terminal assumptions anchored to Damodaran NYU industry datasets. The market price refreshes daily; the DCF fair value updates when Aehr Test Systems files a new quarterly or annual report.
How this AEHR valuation is built
The model projects ten years of Aehr Test Systems's free cash flow to the firm and discounts each year at its own cost of capital. Rather than assuming today's growth and margins persist forever, a moat-scoring step — weighing Aehr Test Systems's ROIC-versus-WACC spread, gross-margin trend, and reinvestment efficiency — decides how many years the business holds its edge before its economics mean-revert toward the Damodaran NYU benchmarks for its industry.
WACC is rebuilt each year from an unlevered-then-relevered beta and the company's evolving capital structure; terminal value uses the Gordon growth model with a reinvestment rate tied to the return earned on new capital (goodwill stripped out to reflect operating efficiency). Every assumption — growth, margins, tax, leverage, convergence timing — is editable, and running the full interactive model adds a 10,000-draw Monte Carlo simulation and WACC-versus-terminal-growth sensitivity heatmaps.
The market price refreshes daily; the DCF fair value updates when Aehr Test Systems files a new quarterly or annual report. For educational/informational purposes only — not investment advice. Last updated 2026-08-06.