Socket Mobile, Inc.

SCKT

TechnologyComputer HardwareNASDAQ

$0.86

Market Cap: $7.07M

Socket Mobile, Inc. (SCKT) Valuation Summary

Updated Apr 6, 2026 22:28

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.06 – $4.89	$0.70	-29.5%
Revenue DCF 10Y	—	N/A	—

Valuation History

DCF Analysis

Socket Mobile, Inc. (SCKT) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$0.70

Market Price

$0.86

Upside / Downside

-18.6%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -21.4% to a target of 10.0% over 5 years, discounted at a WACC of 7.5%, Socket Mobile, Inc. (SCKT) has an intrinsic value of $0.70 per share (range: $0.06 – $4.89).

Key Assumptions

Current Operating Margin

-21.4%

Target Operating Margin

10.0%

WACC

7.5%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

5.1%

Target CapEx/Rev

7.8%

D&A/Revenue

5.2%

Tax Rate

0.0%

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	14	-10.0%	-15.1%	-2	-2	1	(1)	-0	-2	-2
2027	12	-10.0%	-8.8%	-1	-1	1	(1)	-0	-1	-1
2028	11	-10.0%	-2.5%	-0	-0	1	(1)	-0	-0	-0
2029	10	-10.0%	3.7%	0	0	1	(1)	-0	0	0
2030	9	-10.0%	10.0%	1	1	0	(1)	-0	1	1

Enterprise Value Bridge

Sum of PV(FCFF)-2

Terminal Value (Gordon Growth at 3.0%)21

PV of Terminal Value15

Enterprise Value14

(–) Net Debt8

Equity Value6

(÷) Shares Outstanding8

Fair Value per Share$0.70

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.0%	7.0%	10.0%	13.0%	16.0%
5.5%	$0	$1	$3	$4	$5
6.5%	$-0	$1	$1	$2	$3
7.5%	$-1	$0	$1	$1	$2
8.5%	$-1	$-0	$0	$1	$1
9.5%	$-1	$-0	$0	$0	$1

Current price: $0.86. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 28.7% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

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

$0.06 – $4.89

$0.70

-29.5%

Revenue DCF 10Y

—

N/A

—

DCF Analysis

Socket Mobile, Inc. (SCKT) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$0.70

Market Price

$0.86

Upside / Downside

-18.6%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-21.4%

Target Operating Margin

10.0%

WACC

7.5%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

5.1%

Target CapEx/Rev

7.8%

D&A/Revenue

5.2%

Tax Rate

0.0%

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	14	-10.0%	-15.1%	-2	-2	1	(1)	-0	-2	-2
2027	12	-10.0%	-8.8%	-1	-1	1	(1)	-0	-1	-1
2028	11	-10.0%	-2.5%	-0	-0	1	(1)	-0	-0	-0
2029	10	-10.0%	3.7%	0	0	1	(1)	-0	0	0
2030	9	-10.0%	10.0%	1	1	0	(1)	-0	1	1

Enterprise Value Bridge

Sum of PV(FCFF)-2

Terminal Value (Gordon Growth at 3.0%)21

PV of Terminal Value15

Enterprise Value14

(–) Net Debt8

Equity Value6

(÷) Shares Outstanding8

Fair Value per Share$0.70

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.0%	7.0%	10.0%	13.0%	16.0%
5.5%	$0	$1	$3	$4	$5
6.5%	$-0	$1	$1	$2	$3
7.5%	$-1	$0	$1	$1	$2
8.5%	$-1	$-0	$0	$1	$1
9.5%	$-1	$-0	$0	$0	$1

Current price: $0.86. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 28.7% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.