Journey Medical Corporation

DERM

HealthcareDrug Manufacturers - Specialty & GenericNASDAQ

$5.07

Market Cap: $138.63M

Journey Medical Corporation (DERM) Valuation Summary

Updated May 11, 2026 15:21

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.32 – $24.36	$7.78	+53.5%
Revenue DCF 10Y	$0.29 – $23.08	$7.17	+41.4%
▸ Trading Multiples
EV/Revenue	$9.95 – $35.47	$24.51	+383.5%

Valuation History

DCF Analysis

Journey Medical Corporation (DERM) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$7.17

Market Price

$5.07

Upside / Downside

+41.4%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -13.2% to a target of 13.2% over 5 years, discounted at a WACC of 8.6%, Journey Medical Corporation (DERM) has an intrinsic value of $7.17 per share (range: $0.29 – $23.08).

Key Assumptions

Current Operating Margin

-13.2%

Target Operating Margin

13.2%

WACC

8.6%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

15.2%

Target CapEx/Rev

8.6%

D&A/Revenue

5.7%

Tax Rate

21.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	85	37.0%	-7.9%	-7	-7	5	(12)	-13	-1	-1
2027	138	63.2%	-2.6%	-4	-4	8	(19)	11	-26	-23
2028	200	44.3%	2.6%	5	4	11	(26)	12	-23	-19
2029	226	13.1%	7.9%	18	14	13	(28)	5	-6	-5
2030	241	6.9%	13.2%	32	25	14	(29)	3	7	5
2031	242	0.1%	13.2%	32	25	14	(27)	0	12	8
2032	243	0.7%	13.2%	32	25	14	(26)	0	13	8
2033	246	1.3%	13.2%	32	26	14	(24)	1	15	8
2034	251	1.8%	13.2%	33	26	14	(23)	1	16	8
2035	257	2.4%	13.2%	34	27	15	(22)	1	18	8

Enterprise Value Bridge

Sum of PV(FCFF)-2

Terminal Value (Gordon Growth at 3.0%)337

PV of Terminal Value154

Enterprise Value152

(–) Net Debt-24

Equity Value176

(÷) Shares Outstanding24

Fair Value per Share$7.17

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
6.6%	$2	$8	$13	$18	$23
7.6%	$1	$5	$9	$13	$17
8.6%	$1	$4	$7	$10	$14
9.6%	$0	$3	$6	$8	$11
10.6%	$-0	$2	$5	$7	$9

Current price: $5.07. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 19.8% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Journey Medical Corporation (DERM) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$7.78

Market Price

$5.07

Upside / Downside

+53.5%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-13.2%

Target Operating Margin

13.2%

WACC

8.6%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

15.2%

Target CapEx/Rev

8.6%

D&A/Revenue

5.7%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	85	37.0%	-7.9%	-7	-7	5	(12)	-13	-0	-0
2027	138	63.2%	-2.6%	-4	-4	8	(17)	11	-24	-21
2028	200	44.3%	2.6%	5	4	11	(22)	12	-19	-15
2029	226	13.1%	7.9%	18	14	13	(22)	5	-1	-0
2030	241	6.9%	13.2%	32	25	14	(21)	3	15	10

Enterprise Value Bridge

Sum of PV(FCFF)-27

Terminal Value (Gordon Growth at 3.0%)280

PV of Terminal Value193

Enterprise Value167

(–) Net Debt-24

Equity Value191

(÷) Shares Outstanding24

Fair Value per Share$7.78

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
6.6%	$2	$8	$13	$19	$24
7.6%	$1	$6	$10	$14	$18
8.6%	$1	$4	$8	$11	$15
9.6%	$1	$3	$6	$9	$12
10.6%	$0	$3	$5	$8	$10

Current price: $5.07. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 19.8% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$24.51

Market Price

$5.07

Upside / Downside

+383.5%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Journey Medical Corporation (DERM) has a fair value of $24.51 based on 6 comparable companies in the Drug Manufacturers - Specialty & Generic industry.

EV/Revenue Valuation — Drug Manufacturers - Specialty & Generic

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Journey Medical CorporationDERM	124	1.6x	1.2x
Cartesian Therapeutics, Inc.RNAC	240	45.5x	—
Orchestra BioMed Holdings, Inc.OBIO	236	6.1x	121.4x
OraSure Technologies, Inc.OSUR	220	2.0x	1.3x
Fennec Pharmaceuticals Inc.FENC	198	3.6x	2.4x
MediWound Ltd.MDWD	180	10.8x	7.4x
Solana CompanyHSDT	89	13.7x	175.6x
Industry Median		8.5x	7.4x
(*) Revenue		62	85
= Enterprise Value		523	630
(-) Net Debt		-24	-24
Equity Value		547	654
(/) Outstanding shares		24	24
Fair Price		$22	$27

Selected Fair Value (avg of trailing + forward)

$24.51

+383.5%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$0.32 – $24.36

$7.78

+53.5%

Revenue DCF 10Y

$0.29 – $23.08

$7.17

+41.4%

▸ Trading Multiples

EV/Revenue

$9.95 – $35.47

$24.51

+383.5%

DCF Analysis

Journey Medical Corporation (DERM) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$7.17

Market Price

$5.07

Upside / Downside

+41.4%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-13.2%

Target Operating Margin

13.2%

WACC

8.6%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

15.2%

Target CapEx/Rev

8.6%

D&A/Revenue

5.7%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	85	37.0%	-7.9%	-7	-7	5	(12)	-13	-1	-1
2027	138	63.2%	-2.6%	-4	-4	8	(19)	11	-26	-23
2028	200	44.3%	2.6%	5	4	11	(26)	12	-23	-19
2029	226	13.1%	7.9%	18	14	13	(28)	5	-6	-5
2030	241	6.9%	13.2%	32	25	14	(29)	3	7	5
2031	242	0.1%	13.2%	32	25	14	(27)	0	12	8
2032	243	0.7%	13.2%	32	25	14	(26)	0	13	8
2033	246	1.3%	13.2%	32	26	14	(24)	1	15	8
2034	251	1.8%	13.2%	33	26	14	(23)	1	16	8
2035	257	2.4%	13.2%	34	27	15	(22)	1	18	8

Enterprise Value Bridge

Sum of PV(FCFF)-2

Terminal Value (Gordon Growth at 3.0%)337

PV of Terminal Value154

Enterprise Value152

(–) Net Debt-24

Equity Value176

(÷) Shares Outstanding24

Fair Value per Share$7.17

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
6.6%	$2	$8	$13	$18	$23
7.6%	$1	$5	$9	$13	$17
8.6%	$1	$4	$7	$10	$14
9.6%	$0	$3	$6	$8	$11
10.6%	$-0	$2	$5	$7	$9

Current price: $5.07. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 19.8% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$24.51

Market Price

$5.07

Upside / Downside

+383.5%

Verdict

Undervalued

EV/Revenue Valuation — Drug Manufacturers - Specialty & Generic

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Journey Medical CorporationDERM	124	1.6x	1.2x
Cartesian Therapeutics, Inc.RNAC	240	45.5x	—
Orchestra BioMed Holdings, Inc.OBIO	236	6.1x	121.4x
OraSure Technologies, Inc.OSUR	220	2.0x	1.3x
Fennec Pharmaceuticals Inc.FENC	198	3.6x	2.4x
MediWound Ltd.MDWD	180	10.8x	7.4x
Solana CompanyHSDT	89	13.7x	175.6x
Industry Median		8.5x	7.4x
(*) Revenue		62	85
= Enterprise Value		523	630
(-) Net Debt		-24	-24
Equity Value		547	654
(/) Outstanding shares		24	24
Fair Price		$22	$27

Selected Fair Value (avg of trailing + forward)

$24.51

+383.5%