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DCF valuation

What is Electro Sensors Inc worth?

With the base-case assumptions below, a discounted cash flow model on Electro Sensors Inc's reported free cash flow gives $6.45 per share. The share price was $7.74 on July 30, 2026, 20% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$597K
Average free cash flow, last 5 years
$268.4K
Cash
$10.8M
balance sheet of March 31, 2026
Debt
$0
not reported, counted as 0
Diluted shares, fiscal 2025
3,475,828
Revenue growth per year, last 5 years
5.9%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear1.0%1.5%2.0%10.0%$5.16-33%
Base6.0%4.5%2.5%9.0%$6.45-17%
Bull11.0%7.0%3.0%8.0%$8.86+14%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$7.38$7.66$8.01$8.44$9.00
8.0%$6.69$6.87$7.09$7.35$7.67
9.0%$6.18$6.31$6.45$6.62$6.82
10.0%$5.80$5.89$5.99$6.10$6.24
11.0%$5.49$5.56$5.63$5.71$5.81

Where the presets come from

Base: years 1 to 5 grow at Electro Sensors Inc's revenue growth rate over the last 5 fiscal years (5.9% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Electro Sensors Inc company page