IRIDEX Corporation

IRIX

HealthcareMedical - DevicesNASDAQ

$1.03

Market Cap: $17.92M

IRIDEX Corporation (IRIX) Valuation Summary

Updated Apr 6, 2026 22:26

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.72 – $10.47	$3.70	+271.0%
Revenue DCF 10Y	$0.79 – $9.52	$3.48	+248.9%
▸ Trading Multiples
EV/Revenue	$87.11 – $167.65	$71.29	+7053.0%

Valuation History

DCF Analysis

IRIDEX Corporation (IRIX) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$3.48

Market Price

$1.03

Upside / Downside

+237.9%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -4.9% to a target of 13.3% over 5 years, discounted at a WACC of 8.3%, IRIDEX Corporation (IRIX) has an intrinsic value of $3.48 per share (range: $0.79 – $9.52).

Key Assumptions

Current Operating Margin

-4.9%

Target Operating Margin

13.3%

WACC

8.3%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

0.2%

Target CapEx/Rev

6.0%

D&A/Revenue

2.5%

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	53	0.0%	-1.2%	-1	-1	1	(0)	2	-2	-2
2027	53	1.0%	2.4%	1	1	1	(1)	0	1	1
2028	57	6.7%	6.0%	3	3	1	(1)	1	2	2
2029	60	5.8%	9.7%	6	5	1	(2)	1	4	3
2030	60	-0.6%	13.3%	8	6	1	(2)	-0	6	4
2031	60	0.0%	13.3%	8	6	1	(2)	0	6	4
2032	60	0.6%	13.3%	8	6	1	(3)	0	5	3
2033	61	1.2%	13.3%	8	6	2	(3)	0	5	3
2034	62	1.8%	13.3%	8	7	2	(3)	0	4	2
2035	63	2.4%	13.3%	8	7	2	(4)	0	4	2

Enterprise Value Bridge

Sum of PV(FCFF)22

Terminal Value (Gordon Growth at 3.0%)78

PV of Terminal Value37

Enterprise Value58

(–) Net Debt-1

Equity Value60

(÷) Shares Outstanding17

Fair Value per Share$3.48

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
6.3%	$2	$4	$6	$8	$10
7.3%	$1	$3	$4	$6	$7
8.3%	$1	$2	$3	$5	$6
9.3%	$1	$2	$3	$4	$5
10.3%	$1	$2	$3	$3	$4

Current price: $1.03. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 26.6% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

IRIDEX Corporation (IRIX) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$3.70

Market Price

$1.03

Upside / Downside

+259.2%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-4.9%

Target Operating Margin

13.3%

WACC

8.3%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

0.2%

Target CapEx/Rev

6.0%

D&A/Revenue

2.5%

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	53	0.0%	-1.2%	-1	-1	1	(1)	2	-2	-2
2027	53	1.0%	2.4%	1	1	1	(1)	0	1	1
2028	57	6.7%	6.0%	3	3	1	(2)	1	1	1
2029	60	5.8%	9.7%	6	5	1	(3)	1	2	2
2030	60	-0.6%	13.3%	8	6	1	(4)	-0	4	3

Enterprise Value Bridge

Sum of PV(FCFF)4

Terminal Value (Gordon Growth at 3.0%)83

PV of Terminal Value58

Enterprise Value62

(–) Net Debt-1

Equity Value64

(÷) Shares Outstanding17

Fair Value per Share$3.70

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
6.3%	$2	$4	$6	$8	$10
7.3%	$1	$3	$5	$6	$8
8.3%	$1	$2	$4	$5	$6
9.3%	$1	$2	$3	$4	$5
10.3%	$1	$2	$3	$3	$4

Current price: $1.03. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 26.6% 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

$71.29

Market Price

$1.03

Upside / Downside

+6821.1%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), IRIDEX Corporation (IRIX) has a fair value of $71.29 based on 4 comparable companies in the Medical - Devices industry.

EV/Revenue Valuation — Medical - Devices

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
IRIDEX CorporationIRIX	18	0.3x	0.3x
Adagio Medical Holdings, Inc.ADGM	19	54.7x	8.2x
Envoy Medical, Inc.COCH	15	49.1x	59.2x
Inspira Technologies Oxy B.H.N. Ltd.IINN	10	28.4x	2.6x
Vivos Therapeutics, Inc.VVOS	8	0.2x	0.2x
Industry Median		38.8x	5.4x
(*) Revenue		53	50
= Enterprise Value		2,042	405
(-) Net Debt		-1	-1
Equity Value		2,044	407
(/) Outstanding shares		17	17
Fair Price		$119	$24

Selected Fair Value (avg of trailing + forward)

$71.29

+6821.1%

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

$0.72 – $10.47

$3.70

+271.0%

Revenue DCF 10Y

$0.79 – $9.52

$3.48

+248.9%

▸ Trading Multiples

EV/Revenue

$87.11 – $167.65

$71.29

+7053.0%

DCF Analysis

IRIDEX Corporation (IRIX) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$3.48

Market Price

$1.03

Upside / Downside

+237.9%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-4.9%

Target Operating Margin

13.3%

WACC

8.3%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

0.2%

Target CapEx/Rev

6.0%

D&A/Revenue

2.5%

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	53	0.0%	-1.2%	-1	-1	1	(0)	2	-2	-2
2027	53	1.0%	2.4%	1	1	1	(1)	0	1	1
2028	57	6.7%	6.0%	3	3	1	(1)	1	2	2
2029	60	5.8%	9.7%	6	5	1	(2)	1	4	3
2030	60	-0.6%	13.3%	8	6	1	(2)	-0	6	4
2031	60	0.0%	13.3%	8	6	1	(2)	0	6	4
2032	60	0.6%	13.3%	8	6	1	(3)	0	5	3
2033	61	1.2%	13.3%	8	6	2	(3)	0	5	3
2034	62	1.8%	13.3%	8	7	2	(3)	0	4	2
2035	63	2.4%	13.3%	8	7	2	(4)	0	4	2

Enterprise Value Bridge

Sum of PV(FCFF)22

Terminal Value (Gordon Growth at 3.0%)78

PV of Terminal Value37

Enterprise Value58

(–) Net Debt-1

Equity Value60

(÷) Shares Outstanding17

Fair Value per Share$3.48

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
6.3%	$2	$4	$6	$8	$10
7.3%	$1	$3	$4	$6	$7
8.3%	$1	$2	$3	$5	$6
9.3%	$1	$2	$3	$4	$5
10.3%	$1	$2	$3	$3	$4

Current price: $1.03. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 26.6% 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

$71.29

Market Price

$1.03

Upside / Downside

+6821.1%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), IRIDEX Corporation (IRIX) has a fair value of $71.29 based on 4 comparable companies in the Medical - Devices industry.

EV/Revenue Valuation — Medical - Devices

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
IRIDEX CorporationIRIX	18	0.3x	0.3x
Adagio Medical Holdings, Inc.ADGM	19	54.7x	8.2x
Envoy Medical, Inc.COCH	15	49.1x	59.2x
Inspira Technologies Oxy B.H.N. Ltd.IINN	10	28.4x	2.6x
Vivos Therapeutics, Inc.VVOS	8	0.2x	0.2x
Industry Median		38.8x	5.4x
(*) Revenue		53	50
= Enterprise Value		2,042	405
(-) Net Debt		-1	-1
Equity Value		2,044	407
(/) Outstanding shares		17	17
Fair Price		$119	$24

Selected Fair Value (avg of trailing + forward)

$71.29

+6821.1%