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DCF valuation

What is SemiLEDs Corp worth?

With the base-case assumptions below, a discounted cash flow model on SemiLEDs Corp's reported free cash flow gives $7.63 per share. The share price was $2.24 on September 25, 2026, 71% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$1.6M
Average free cash flow, last 5 years
-$734.4K
Cash
$6M
balance sheet of May 31, 2026
Debt
$1.3M
balance sheet of May 31, 2026
Diluted shares, fiscal 2025
7,721,000
Revenue growth per year, last 5 years
47.9%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear10.0%6.0%2.0%10.0%$4.87+118%
Base15.0%9.0%2.5%9.0%$7.63+241%
Bull20.0%11.5%3.0%8.0%$12.77+470%

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%$9.72$10.37$11.17$12.16$13.44
8.0%$8.15$8.57$9.07$9.67$10.40
9.0%$7.01$7.30$7.63$8.02$8.48
10.0%$6.14$6.35$6.58$6.85$7.15
11.0%$5.47$5.62$5.79$5.97$6.19

Where the presets come from

Base: years 1 to 5 grow at SemiLEDs Corp's revenue growth rate over the last 5 fiscal years (47.9% 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

SemiLEDs Corp company page