DCF Valuation
Electro-Sensors Inc (ELSE) DCF Valuation — Is ELSE overvalued?
The estimated DCF fair value of one Electro-Sensors Inc (ELSE) share is $5.40. Compared to the current market price of $7.74, the stock is overvalued by 30.3%.
DCF fair value
$5.40
Market price
$7.74
Upside / downside
−30.3%
Prefer the inverse question? See what growth rate the market is pricing into ELSE →
Electro-Sensors Inc (ELSE) DCF valuation FAQ
What is the DCF fair value of Electro-Sensors Inc (ELSE)?
The discounted-cash-flow model estimates the intrinsic fair value of one Electro-Sensors Inc (ELSE) share at $5.40, based on a 10-year projection of its cash flows converging to Damodaran industry averages.
Is Electro-Sensors Inc (ELSE) overvalued or undervalued?
Against the current market price of $7.74, the DCF fair value of $5.40 implies ELSE is overvalued by 30.3%.
How is the ELSE DCF value calculated?
It is a 10-year discounted-cash-flow estimate built from Electro-Sensors Inc's reported fundamentals, with terminal assumptions anchored to Damodaran NYU industry datasets. The market price refreshes daily; the DCF fair value updates when Electro-Sensors Inc files a new quarterly or annual report.
How this ELSE valuation is built
The model projects ten years of Electro-Sensors Inc'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 Electro-Sensors Inc'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 Electro-Sensors Inc files a new quarterly or annual report. For educational/informational purposes only — not investment advice. Last updated 2026-08-03.