Precision Optics Corporation, Inc.

POCI

HealthcareMedical - Instruments & SuppliesNASDAQ

$4.75

Market Cap: $36.73M

Precision Optics Corporation, Inc. (POCI) Valuation Summary

Updated May 11, 2026 02:01

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.18 – $7.45	$0.99	-79.1%
Revenue DCF 10Y	$0.18 – $10.78	$2.16	-54.6%
▸ Trading Multiples
EV/Revenue	$2.12 – $56.86	$2.51	-47.1%

Valuation History

DCF Analysis

Precision Optics Corporation, Inc. (POCI) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$2.16

Market Price

$4.75

Upside / Downside

-54.6%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -29.1% to a target of 13.2% over 5 years, discounted at a WACC of 8.7%, Precision Optics Corporation, Inc. (POCI) has an intrinsic value of $2.16 per share (range: $0.18 – $10.78).

Key Assumptions

Current Operating Margin

-29.1%

Target Operating Margin

13.2%

WACC

8.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.0%

Target CapEx/Rev

6.0%

D&A/Revenue

1.2%

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	22	14.5%	-20.6%	-5	-5	0	(0)	0	-5	-5
2027	25	13.3%	-12.2%	-3	-3	0	(0)	1	-4	-3
2028	28	12.2%	-3.7%	-1	-1	0	(1)	1	-2	-2
2029	31	11.1%	4.7%	1	1	0	(1)	1	-0	-0
2030	34	9.9%	13.2%	4	4	0	(1)	1	2	1
2031	37	8.8%	13.2%	5	4	0	(1)	1	2	1
2032	40	7.6%	13.2%	5	4	0	(2)	1	2	1
2033	42	6.5%	13.2%	6	4	0	(2)	1	2	1
2034	44	5.3%	13.2%	6	5	1	(2)	1	2	1
2035	46	4.2%	13.2%	6	5	1	(3)	0	2	1

Enterprise Value Bridge

Sum of PV(FCFF)-3

Terminal Value (Gordon Growth at 3.0%)39

PV of Terminal Value18

Enterprise Value15

(–) Net Debt0

Equity Value15

(÷) Shares Outstanding7

Fair Value per Share$2.16

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
6.7%	$-2	$1	$4	$8	$11
7.7%	$-2	$1	$3	$6	$8
8.7%	$-2	$0	$2	$4	$6
9.7%	$-2	$-0	$2	$3	$5
10.7%	$-2	$-0	$1	$3	$4

Current price: $4.75. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 23.7% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Precision Optics Corporation, Inc. (POCI) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$0.99

Market Price

$4.75

Upside / Downside

-79.1%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-29.1%

Target Operating Margin

13.2%

WACC

8.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.0%

Target CapEx/Rev

6.0%

D&A/Revenue

1.2%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	22	13.5%	-20.6%	-4	-4	(0)	0	-5	-5
2027	24	11.4%	-12.2%	-3	-3	(1)	1	-4	-4
2028	26	9.3%	-3.7%	-1	-1	(1)	1	-2	-2
2029	28	7.2%	4.7%	1	1	(1)	0	-0	-0
2030	30	5.1%	13.2%	4	3	(2)	0	1	1

Enterprise Value Bridge

Sum of PV(FCFF)-9

Terminal Value (Gordon Growth at 3.0%)24

PV of Terminal Value16

Enterprise Value7

(–) Net Debt0

Equity Value7

(÷) Shares Outstanding7

Fair Value per Share$0.99

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
6.7%	$-2	$0	$3	$5	$7
7.7%	$-2	$-0	$2	$4	$5
8.7%	$-2	$-1	$1	$3	$4
9.7%	$-2	$-1	$1	$2	$3
10.7%	$-2	$-1	$0	$1	$2

Current price: $4.75. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 23.7% 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

$2.51

Market Price

$4.75

Upside / Downside

-47.1%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Precision Optics Corporation, Inc. (POCI) has a fair value of $2.51 based on 7 comparable companies in the Medical - Instruments & Supplies industry.

EV/Revenue Valuation — Medical - Instruments & Supplies

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Precision Optics Corporation, Inc.POCI	32	1.7x	—
Nutriband Inc.NTRB	46	20.2x	12.5x
Milestone Scientific Inc.MLSS	37	4.1x	4.4x
Myomo, Inc.MYO	32	0.9x	0.8x
Harvard Bioscience, Inc.HBIO	31	0.8x	0.7x
IGC Pharma, Inc.IGC	31	24.0x	1.4x
Retractable Technologies, Inc.RVP	21	0.5x	—
NEXGEL, Inc.NXGL	6	0.8x	0.8x
Industry Median		0.9x	1.1x
(*) Revenue		19
= Enterprise Value		17
(-) Net Debt		0
Equity Value		17
(/) Outstanding shares		7
Fair Price		$3

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

$0.18 – $7.45

$0.99

-79.1%

Revenue DCF 10Y

$0.18 – $10.78

$2.16

-54.6%

▸ Trading Multiples

EV/Revenue

$2.12 – $56.86

$2.51

-47.1%

DCF Analysis

Precision Optics Corporation, Inc. (POCI) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$2.16

Market Price

$4.75

Upside / Downside

-54.6%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-29.1%

Target Operating Margin

13.2%

WACC

8.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

1.0%

Target CapEx/Rev

6.0%

D&A/Revenue

1.2%

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	22	14.5%	-20.6%	-5	-5	0	(0)	0	-5	-5
2027	25	13.3%	-12.2%	-3	-3	0	(0)	1	-4	-3
2028	28	12.2%	-3.7%	-1	-1	0	(1)	1	-2	-2
2029	31	11.1%	4.7%	1	1	0	(1)	1	-0	-0
2030	34	9.9%	13.2%	4	4	0	(1)	1	2	1
2031	37	8.8%	13.2%	5	4	0	(1)	1	2	1
2032	40	7.6%	13.2%	5	4	0	(2)	1	2	1
2033	42	6.5%	13.2%	6	4	0	(2)	1	2	1
2034	44	5.3%	13.2%	6	5	1	(2)	1	2	1
2035	46	4.2%	13.2%	6	5	1	(3)	0	2	1

Enterprise Value Bridge

Sum of PV(FCFF)-3

Terminal Value (Gordon Growth at 3.0%)39

PV of Terminal Value18

Enterprise Value15

(–) Net Debt0

Equity Value15

(÷) Shares Outstanding7

Fair Value per Share$2.16

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
6.7%	$-2	$1	$4	$8	$11
7.7%	$-2	$1	$3	$6	$8
8.7%	$-2	$0	$2	$4	$6
9.7%	$-2	$-0	$2	$3	$5
10.7%	$-2	$-0	$1	$3	$4

Current price: $4.75. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 23.7% 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

$2.51

Market Price

$4.75

Upside / Downside

-47.1%

Verdict

Overvalued

EV/Revenue Valuation — Medical - Instruments & Supplies

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Precision Optics Corporation, Inc.POCI	32	1.7x	—
Nutriband Inc.NTRB	46	20.2x	12.5x
Milestone Scientific Inc.MLSS	37	4.1x	4.4x
Myomo, Inc.MYO	32	0.9x	0.8x
Harvard Bioscience, Inc.HBIO	31	0.8x	0.7x
IGC Pharma, Inc.IGC	31	24.0x	1.4x
Retractable Technologies, Inc.RVP	21	0.5x	—
NEXGEL, Inc.NXGL	6	0.8x	0.8x
Industry Median		0.9x	1.1x
(*) Revenue		19
= Enterprise Value		17
(-) Net Debt		0
Equity Value		17
(/) Outstanding shares		7
Fair Price		$3