CS Disco, Inc.

LAW

TechnologySoftware - ApplicationNYSE

$4.12

Market Cap: $264.23M

CS Disco, Inc. (LAW) Valuation Summary

Updated May 9, 2026 11:42

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.21 – $5.48	$0.21	-94.8%
Revenue DCF 10Y	$0.17 – $6.83	$0.75	-81.8%
▸ Trading Multiples
EV/Revenue	$2.50 – $4.15	$3.15	-23.6%

Valuation History

DCF Analysis

CS Disco, Inc. (LAW) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$0.75

Market Price

$4.12

Upside / Downside

-81.8%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -30.7% to a target of 10.2% over 5 years, discounted at a WACC of 8.9%, CS Disco, Inc. (LAW) has an intrinsic value of $0.75 per share (range: $0.17 – $6.83).

Key Assumptions

Current Operating Margin

-30.7%

Target Operating Margin

10.2%

WACC

8.9%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

4.7%

Target CapEx/Rev

6.0%

D&A/Revenue

1.9%

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	175	11.7%	-22.5%	-39	-39	3	(8)	2	-46	-44
2027	194	10.8%	-14.3%	-28	-28	4	(10)	3	-36	-32
2028	222	14.4%	-6.1%	-14	-14	4	(11)	4	-24	-20
2029	240	8.2%	2.1%	5	4	5	(13)	2	-7	-5
2030	260	8.2%	10.2%	27	21	5	(14)	3	9	6
2031	279	7.3%	10.2%	29	23	5	(15)	3	10	6
2032	297	6.5%	10.2%	30	24	6	(17)	2	11	6
2033	314	5.6%	10.2%	32	25	6	(18)	2	11	6
2034	329	4.7%	10.2%	34	27	6	(19)	2	12	6
2035	342	3.9%	10.2%	35	28	7	(21)	2	12	5

Enterprise Value Bridge

Sum of PV(FCFF)-65

Terminal Value (Gordon Growth at 3.0%)208

PV of Terminal Value92

Enterprise Value27

(–) Net Debt-20

Equity Value46

(÷) Shares Outstanding62

Fair Value per Share$0.75

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.2%	7.2%	10.2%	13.2%	16.2%
6.9%	$-2	$-0	$2	$4	$7
7.9%	$-2	$-1	$1	$3	$5
8.9%	$-2	$-1	$1	$2	$4
9.9%	$-2	$-1	$0	$2	$3
10.9%	$-2	$-1	$0	$1	$2

Current price: $4.12. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 13.5% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

CS Disco, Inc. (LAW) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$0.21

Market Price

$4.12

Upside / Downside

-94.8%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-30.7%

Target Operating Margin

10.2%

WACC

8.9%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

4.7%

Target CapEx/Rev

6.0%

D&A/Revenue

1.9%

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	175	11.7%	-22.5%	-39	-39	3	(9)	2	-47	-45
2027	194	10.8%	-14.3%	-28	-28	4	(10)	3	-37	-32
2028	222	14.4%	-6.1%	-14	-14	4	(12)	4	-25	-20
2029	240	8.2%	2.1%	5	4	5	(14)	2	-8	-6
2030	260	8.2%	10.2%	27	21	5	(16)	3	8	5

Enterprise Value Bridge

Sum of PV(FCFF)-98

Terminal Value (Gordon Growth at 3.0%)134

PV of Terminal Value91

Enterprise Value-7

(–) Net Debt-20

Equity Value13

(÷) Shares Outstanding62

Fair Value per Share$0.21

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.2%	7.2%	10.2%	13.2%	16.2%
6.9%	$-2	$-1	$1	$3	$5
7.9%	$-2	$-1	$1	$2	$4
8.9%	$-2	$-1	$0	$2	$3
9.9%	$-2	$-1	$-0	$1	$2
10.9%	$-2	$-1	$-0	$1	$2

Current price: $4.12. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 13.5% 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

$3.15

Market Price

$4.12

Upside / Downside

-23.6%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), CS Disco, Inc. (LAW) has a fair value of $3.15 based on 8 comparable companies in the Software - Application industry.

EV/Revenue Valuation — Software - Application

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
CS Disco, Inc.LAW	254	1.5x	1.6x
Rackspace Technology, Inc.RXT	869	1.5x	1.5x
PubMatic, Inc.PUBM	485	1.4x	1.3x
Lesaka Technologies, Inc.LSAK	409	0.9x	1.1x
Rimini Street, Inc.RMNI	365	0.6x	0.6x
Repay Holdings CorporationRPAY	307	2.0x	2.0x
Commerce.com, Inc.CMRC	255	1.1x	1.1x
Bakkt Holdings, Inc.BKKT	157	0.1x	2.0x
Veritone, Inc.VERI	105	1.1x	0.8x
Industry Median		1.1x	1.2x
(*) Revenue		157	144
= Enterprise Value		174	175
(-) Net Debt		-20	-20
Equity Value		194	195
(/) Outstanding shares		62	62
Fair Price		$3	$3

Selected Fair Value (avg of trailing + forward)

$3.15

-23.6%

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

$0.21 – $5.48

$0.21

-94.8%

Revenue DCF 10Y

$0.17 – $6.83

$0.75

-81.8%

▸ Trading Multiples

EV/Revenue

$2.50 – $4.15

$3.15

-23.6%

DCF Analysis

CS Disco, Inc. (LAW) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$0.75

Market Price

$4.12

Upside / Downside

-81.8%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-30.7%

Target Operating Margin

10.2%

WACC

8.9%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

4.7%

Target CapEx/Rev

6.0%

D&A/Revenue

1.9%

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	175	11.7%	-22.5%	-39	-39	3	(8)	2	-46	-44
2027	194	10.8%	-14.3%	-28	-28	4	(10)	3	-36	-32
2028	222	14.4%	-6.1%	-14	-14	4	(11)	4	-24	-20
2029	240	8.2%	2.1%	5	4	5	(13)	2	-7	-5
2030	260	8.2%	10.2%	27	21	5	(14)	3	9	6
2031	279	7.3%	10.2%	29	23	5	(15)	3	10	6
2032	297	6.5%	10.2%	30	24	6	(17)	2	11	6
2033	314	5.6%	10.2%	32	25	6	(18)	2	11	6
2034	329	4.7%	10.2%	34	27	6	(19)	2	12	6
2035	342	3.9%	10.2%	35	28	7	(21)	2	12	5

Enterprise Value Bridge

Sum of PV(FCFF)-65

Terminal Value (Gordon Growth at 3.0%)208

PV of Terminal Value92

Enterprise Value27

(–) Net Debt-20

Equity Value46

(÷) Shares Outstanding62

Fair Value per Share$0.75

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.2%	7.2%	10.2%	13.2%	16.2%
6.9%	$-2	$-0	$2	$4	$7
7.9%	$-2	$-1	$1	$3	$5
8.9%	$-2	$-1	$1	$2	$4
9.9%	$-2	$-1	$0	$2	$3
10.9%	$-2	$-1	$0	$1	$2

Current price: $4.12. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 13.5% 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

$3.15

Market Price

$4.12

Upside / Downside

-23.6%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), CS Disco, Inc. (LAW) has a fair value of $3.15 based on 8 comparable companies in the Software - Application industry.

EV/Revenue Valuation — Software - Application

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
CS Disco, Inc.LAW	254	1.5x	1.6x
Rackspace Technology, Inc.RXT	869	1.5x	1.5x
PubMatic, Inc.PUBM	485	1.4x	1.3x
Lesaka Technologies, Inc.LSAK	409	0.9x	1.1x
Rimini Street, Inc.RMNI	365	0.6x	0.6x
Repay Holdings CorporationRPAY	307	2.0x	2.0x
Commerce.com, Inc.CMRC	255	1.1x	1.1x
Bakkt Holdings, Inc.BKKT	157	0.1x	2.0x
Veritone, Inc.VERI	105	1.1x	0.8x
Industry Median		1.1x	1.2x
(*) Revenue		157	144
= Enterprise Value		174	175
(-) Net Debt		-20	-20
Equity Value		194	195
(/) Outstanding shares		62	62
Fair Price		$3	$3

Selected Fair Value (avg of trailing + forward)

$3.15

-23.6%