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DCF valuation

What is Power Solutions International, Inc. worth?

With the base-case assumptions below, a discounted cash flow model on Power Solutions International, Inc.'s reported free cash flow gives $19.49 per share. The share price was $36.58 on November 10, 2026, 88% above that value.

Inputs from the filings

Free cash flow, fiscal 2025
$14.1M
Average free cash flow, last 5 years
$12.8M
Cash
$72M
balance sheet of September 30, 2026
Debt
$890K
balance sheet of September 30, 2026
Diluted shares, fiscal 2025
23,066,000
Revenue growth per year, last 5 years
11.6%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear6.5%4.5%2.0%10.0%$13.26-64%
Base11.5%7.0%2.5%9.0%$19.49-47%
Bull16.5%10.0%3.0%8.0%$31.90-13%

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%$24.23$25.69$27.48$29.72$32.60
8.0%$20.67$21.62$22.75$24.10$25.74
9.0%$18.09$18.74$19.49$20.36$21.39
10.0%$16.12$16.58$17.11$17.70$18.39
11.0%$14.58$14.92$15.30$15.72$16.20

Where the presets come from

Base: years 1 to 5 grow at Power Solutions International, Inc.'s revenue growth rate over the last 5 fiscal years (11.6% 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

Power Solutions International, Inc. company page