Optical Cable Corporation

OCC

TechnologyCommunication EquipmentNASDAQ

$11.22

Market Cap: $99.45M

Optical Cable Corporation (OCC) Valuation Summary

Updated Apr 6, 2026 22:27

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.04 – $21.21	$3.87	-59.0%
Revenue DCF 10Y	$0.19 – $23.76	$5.31	-43.8%
▸ Trading Multiples
EV/Revenue	$0.39 – $12.83	$1.72	-81.8%

Valuation History

DCF Analysis

Optical Cable Corporation (OCC) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$5.31

Market Price

$11.22

Upside / Downside

-52.7%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -0.6% to a target of 10.0% over 5 years, discounted at a WACC of 9.0%, Optical Cable Corporation (OCC) has an intrinsic value of $5.31 per share (range: $0.19 – $23.76).

Key Assumptions

Current Operating Margin

-0.6%

Target Operating Margin

10.0%

WACC

9.0%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

0.5%

Target CapEx/Rev

6.0%

D&A/Revenue

1.5%

Tax Rate

3.1%

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	77	5.4%	1.5%	1	1	1	(1)	5	-3	-3
2027	82	6.5%	3.6%	3	3	1	(1)	2	1	1
2028	86	5.2%	5.8%	5	5	1	(2)	2	3	2
2029	90	4.9%	7.9%	7	7	1	(2)	2	4	3
2030	95	4.6%	10.0%	9	9	1	(3)	2	6	4
2031	99	4.3%	10.0%	10	10	1	(4)	2	6	4
2032	103	4.1%	10.0%	10	10	2	(4)	2	5	3
2033	107	3.8%	10.0%	11	10	2	(5)	1	5	3
2034	110	3.5%	10.0%	11	11	2	(6)	1	5	2
2035	114	3.3%	10.0%	11	11	2	(7)	1	4	2

Enterprise Value Bridge

Sum of PV(FCFF)20

Terminal Value (Gordon Growth at 3.0%)77

PV of Terminal Value34

Enterprise Value54

(–) Net Debt11

Equity Value43

(÷) Shares Outstanding8

Fair Value per Share$5.31

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.0%	7.0%	10.0%	13.0%	16.0%
7.0%	$-2	$1	$9	$16	$24
8.0%	$-2	$1	$7	$13	$18
9.0%	$-2	$0	$5	$10	$15
10.0%	$-2	$0	$4	$8	$12
11.0%	$-2	$-0	$3	$7	$11

Current price: $11.22. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 37.4% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Optical Cable Corporation (OCC) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$3.87

Market Price

$11.22

Upside / Downside

-65.5%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-0.6%

Target Operating Margin

10.0%

WACC

9.0%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

0.5%

Target CapEx/Rev

6.0%

D&A/Revenue

1.5%

Tax Rate

3.1%

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	77	5.4%	1.5%	1	1	1	(1)	5	-4	-4
2027	82	6.5%	3.6%	3	3	1	(2)	2	0	0
2028	86	4.8%	5.8%	5	5	1	(3)	1	1	1
2029	90	4.2%	7.9%	7	7	1	(4)	1	2	2
2030	93	3.6%	10.0%	9	9	1	(6)	1	4	2

Enterprise Value Bridge

Sum of PV(FCFF)1

Terminal Value (Gordon Growth at 3.0%)60

PV of Terminal Value41

Enterprise Value42

(–) Net Debt11

Equity Value31

(÷) Shares Outstanding8

Fair Value per Share$3.87

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.0%	7.0%	10.0%	13.0%	16.0%
7.0%	$-3	$0	$7	$14	$21
8.0%	$-3	$-0	$5	$11	$16
9.0%	$-3	$-1	$4	$8	$13
10.0%	$-3	$-1	$3	$7	$11
11.0%	$-3	$-1	$2	$6	$9

Current price: $11.22. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 37.4% 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

$1.72

Market Price

$11.22

Upside / Downside

-84.7%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Optical Cable Corporation (OCC) has a fair value of $1.72 based on 7 comparable companies in the Communication Equipment industry.

EV/Revenue Valuation — Communication Equipment

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Optical Cable CorporationOCC	90	1.4x	1.3x
Planet Image International Limited Class A Ordinary SharesYIBO	55	0.4x	—
WidePoint CorporationWYY	50	0.3x	0.4x
Franklin Wireless Corp.FKWL	44	0.7x	0.2x
AmpliTech Group, Inc.AMPG	40	1.6x	3.2x
Research Frontiers IncorporatedREFR	33	29.5x	19.2x
Wallbox N.V.WBX	32	0.2x	0.2x
Cambium Networks CorporationCMBM	4	0.1x	0.1x
Industry Median		0.4x	0.3x
(*) Revenue		73	77
= Enterprise Value		26	24
(-) Net Debt		11	11
Equity Value		15	13
(/) Outstanding shares		8	8
Fair Price		$2	$2

Selected Fair Value (avg of trailing + forward)

$1.72

-84.7%

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

$0.04 – $21.21

$3.87

-59.0%

Revenue DCF 10Y

$0.19 – $23.76

$5.31

-43.8%

▸ Trading Multiples

EV/Revenue

$0.39 – $12.83

$1.72

-81.8%

DCF Analysis

Optical Cable Corporation (OCC) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$5.31

Market Price

$11.22

Upside / Downside

-52.7%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-0.6%

Target Operating Margin

10.0%

WACC

9.0%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

0.5%

Target CapEx/Rev

6.0%

D&A/Revenue

1.5%

Tax Rate

3.1%

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	77	5.4%	1.5%	1	1	1	(1)	5	-3	-3
2027	82	6.5%	3.6%	3	3	1	(1)	2	1	1
2028	86	5.2%	5.8%	5	5	1	(2)	2	3	2
2029	90	4.9%	7.9%	7	7	1	(2)	2	4	3
2030	95	4.6%	10.0%	9	9	1	(3)	2	6	4
2031	99	4.3%	10.0%	10	10	1	(4)	2	6	4
2032	103	4.1%	10.0%	10	10	2	(4)	2	5	3
2033	107	3.8%	10.0%	11	10	2	(5)	1	5	3
2034	110	3.5%	10.0%	11	11	2	(6)	1	5	2
2035	114	3.3%	10.0%	11	11	2	(7)	1	4	2

Enterprise Value Bridge

Sum of PV(FCFF)20

Terminal Value (Gordon Growth at 3.0%)77

PV of Terminal Value34

Enterprise Value54

(–) Net Debt11

Equity Value43

(÷) Shares Outstanding8

Fair Value per Share$5.31

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.0%	7.0%	10.0%	13.0%	16.0%
7.0%	$-2	$1	$9	$16	$24
8.0%	$-2	$1	$7	$13	$18
9.0%	$-2	$0	$5	$10	$15
10.0%	$-2	$0	$4	$8	$12
11.0%	$-2	$-0	$3	$7	$11

Current price: $11.22. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 37.4% 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

$1.72

Market Price

$11.22

Upside / Downside

-84.7%

Verdict

Overvalued

EV/Revenue Valuation — Communication Equipment

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Optical Cable CorporationOCC	90	1.4x	1.3x
Planet Image International Limited Class A Ordinary SharesYIBO	55	0.4x	—
WidePoint CorporationWYY	50	0.3x	0.4x
Franklin Wireless Corp.FKWL	44	0.7x	0.2x
AmpliTech Group, Inc.AMPG	40	1.6x	3.2x
Research Frontiers IncorporatedREFR	33	29.5x	19.2x
Wallbox N.V.WBX	32	0.2x	0.2x
Cambium Networks CorporationCMBM	4	0.1x	0.1x
Industry Median		0.4x	0.3x
(*) Revenue		73	77
= Enterprise Value		26	24
(-) Net Debt		11	11
Equity Value		15	13
(/) Outstanding shares		8	8
Fair Price		$2	$2

Selected Fair Value (avg of trailing + forward)

$1.72

-84.7%