Methode Electronics, Inc.

MEI

TechnologyHardware, Equipment & PartsNYSE

$13.87

Market Cap: $491.42M

Methode Electronics, Inc. (MEI) Valuation Summary

Updated Apr 6, 2026 22:27

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$1.04 – $85.36	$24.05	+316.8%
Revenue DCF 10Y	$5.25 – $74.39	$20.60	+257.1%
▸ Trading Multiples
EV/Revenue	$30.31 – $1,030.12	$44.74	+675.4%

Valuation History

DCF Analysis

Methode Electronics, Inc. (MEI) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$20.60

Market Price

$13.87

Upside / Downside

+48.5%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -2.3% to a target of 10.0% over 5 years, discounted at a WACC of 8.2%, Methode Electronics, Inc. (MEI) has an intrinsic value of $20.60 per share (range: $5.25 – $74.39).

Key Assumptions

Current Operating Margin

-2.3%

Target Operating Margin

10.0%

WACC

8.2%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.5%

Target CapEx/Rev

7.3%

D&A/Revenue

4.8%

Tax Rate

12.5%

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	961	-8.3%	0.2%	2	1	47	(37)	-37	48	46
2027	956	-0.5%	2.6%	25	22	46	(41)	-1	29	26
2028	1,041	8.9%	5.1%	53	46	50	(48)	24	24	20
2029	1,031	-0.9%	7.5%	78	68	50	(52)	-3	69	52
2030	1,022	-0.9%	10.0%	102	89	49	(55)	-3	86	61
2031	1,019	-0.3%	10.0%	102	89	49	(59)	-1	80	52
2032	1,023	0.4%	10.0%	102	89	50	(63)	1	75	45
2033	1,033	1.0%	10.0%	103	90	50	(67)	3	70	39
2034	1,051	1.7%	10.0%	105	92	51	(72)	5	65	33
2035	1,075	2.4%	10.0%	107	94	52	(78)	7	61	29

Enterprise Value Bridge

Sum of PV(FCFF)402

Terminal Value (Gordon Growth at 3.0%)1,203

PV of Terminal Value569

Enterprise Value971

(–) Net Debt240

Equity Value731

(÷) Shares Outstanding35

Fair Value per Share$20.60

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.0%	7.0%	10.0%	13.0%	16.0%
6.2%	$-1	$18	$37	$56	$74
7.2%	$-2	$13	$27	$41	$55
8.2%	$-2	$9	$21	$32	$43
9.2%	$-3	$7	$16	$26	$35
10.2%	$-3	$5	$13	$21	$29

Current price: $13.87. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 28.8% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Methode Electronics, Inc. (MEI) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$24.05

Market Price

$13.87

Upside / Downside

+73.4%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-2.3%

Target Operating Margin

10.0%

WACC

8.2%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.5%

Target CapEx/Rev

7.3%

D&A/Revenue

4.8%

Tax Rate

12.5%

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	961	-8.3%	0.2%	2	1	47	(41)	-37	44	42
2027	956	-0.5%	2.6%	25	22	46	(48)	-1	22	19
2028	1,041	8.9%	5.1%	53	46	50	(60)	24	12	10
2029	1,031	-0.9%	7.5%	78	68	50	(67)	-3	53	41
2030	1,022	-0.9%	10.0%	102	89	49	(74)	-3	67	47

Enterprise Value Bridge

Sum of PV(FCFF)159

Terminal Value (Gordon Growth at 3.0%)1,331

PV of Terminal Value934

Enterprise Value1,093

(–) Net Debt240

Equity Value854

(÷) Shares Outstanding35

Fair Value per Share$24.05

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.0%	7.0%	10.0%	13.0%	16.0%
6.2%	$4	$24	$44	$65	$85
7.2%	$1	$16	$32	$47	$63
8.2%	$-1	$12	$24	$36	$49
9.2%	$-2	$9	$19	$29	$39
10.2%	$-2	$6	$15	$24	$32

Current price: $13.87. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 28.8% 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

$44.27

Market Price

$13.87

Upside / Downside

+219.2%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Methode Electronics, Inc. (MEI) has a fair value of $44.27 based on 8 comparable companies in the Hardware, Equipment & Parts industry.

EV/Revenue Valuation — Hardware, Equipment & Parts

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Methode Electronics, Inc.MEI	492	0.7x	0.7x
Satellogic Inc.SATL	771	41.8x	22.6x
ON24, Inc.ONTF	348	2.3x	2.1x
A2Z Cust2Mate Solutions Corp.AZ	288	35.1x	21.5x
SmartRent, Inc.SMRT	288	1.3x	1.1x
Inseego Corp.INSG	198	1.3x	1.1x
Kaltura, Inc.KLTR	165	1.0x	1.0x
Unisys CorporationUIS	150	0.3x	0.3x
Digimarc CorporationDMRC	135	3.9x	3.3x
Industry Median		1.8x	1.6x
(*) Revenue		1,048	1,083
= Enterprise Value		1,891	1,731
(-) Net Debt		240	240
Equity Value		1,651	1,492
(/) Outstanding shares		35	35
Fair Price		$47	$42

Selected Fair Value (avg of trailing + forward)

$44.27

+219.2%

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

$1.04 – $85.36

$24.05

+316.8%

Revenue DCF 10Y

$5.25 – $74.39

$20.60

+257.1%

▸ Trading Multiples

EV/Revenue

$30.31 – $1,030.12

$44.74

+675.4%

DCF Analysis

Methode Electronics, Inc. (MEI) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$20.60

Market Price

$13.87

Upside / Downside

+48.5%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-2.3%

Target Operating Margin

10.0%

WACC

8.2%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.5%

Target CapEx/Rev

7.3%

D&A/Revenue

4.8%

Tax Rate

12.5%

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	961	-8.3%	0.2%	2	1	47	(37)	-37	48	46
2027	956	-0.5%	2.6%	25	22	46	(41)	-1	29	26
2028	1,041	8.9%	5.1%	53	46	50	(48)	24	24	20
2029	1,031	-0.9%	7.5%	78	68	50	(52)	-3	69	52
2030	1,022	-0.9%	10.0%	102	89	49	(55)	-3	86	61
2031	1,019	-0.3%	10.0%	102	89	49	(59)	-1	80	52
2032	1,023	0.4%	10.0%	102	89	50	(63)	1	75	45
2033	1,033	1.0%	10.0%	103	90	50	(67)	3	70	39
2034	1,051	1.7%	10.0%	105	92	51	(72)	5	65	33
2035	1,075	2.4%	10.0%	107	94	52	(78)	7	61	29

Enterprise Value Bridge

Sum of PV(FCFF)402

Terminal Value (Gordon Growth at 3.0%)1,203

PV of Terminal Value569

Enterprise Value971

(–) Net Debt240

Equity Value731

(÷) Shares Outstanding35

Fair Value per Share$20.60

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.0%	7.0%	10.0%	13.0%	16.0%
6.2%	$-1	$18	$37	$56	$74
7.2%	$-2	$13	$27	$41	$55
8.2%	$-2	$9	$21	$32	$43
9.2%	$-3	$7	$16	$26	$35
10.2%	$-3	$5	$13	$21	$29

Current price: $13.87. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 28.8% 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

$44.27

Market Price

$13.87

Upside / Downside

+219.2%

Verdict

Undervalued

EV/Revenue Valuation — Hardware, Equipment & Parts

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Methode Electronics, Inc.MEI	492	0.7x	0.7x
Satellogic Inc.SATL	771	41.8x	22.6x
ON24, Inc.ONTF	348	2.3x	2.1x
A2Z Cust2Mate Solutions Corp.AZ	288	35.1x	21.5x
SmartRent, Inc.SMRT	288	1.3x	1.1x
Inseego Corp.INSG	198	1.3x	1.1x
Kaltura, Inc.KLTR	165	1.0x	1.0x
Unisys CorporationUIS	150	0.3x	0.3x
Digimarc CorporationDMRC	135	3.9x	3.3x
Industry Median		1.8x	1.6x
(*) Revenue		1,048	1,083
= Enterprise Value		1,891	1,731
(-) Net Debt		240	240
Equity Value		1,651	1,492
(/) Outstanding shares		35	35
Fair Price		$47	$42

Selected Fair Value (avg of trailing + forward)

$44.27

+219.2%