Telos Corporation

TLS

TechnologyInformation Technology ServicesNASDAQ

$4.18

Market Cap: $312.74M

Telos Corporation (TLS) Valuation Summary

Updated Apr 6, 2026 22:29

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.09 – $7.33	$2.47	-42.9%
Revenue DCF 10Y	$0.55 – $5.08	$1.64	-62.1%
▸ Trading Multiples
EV/Revenue	$2.88 – $4.13	$3.14	-27.4%

Valuation History

DCF Analysis

Telos Corporation (TLS) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$1.64

Market Price

$4.18

Upside / Downside

-60.8%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -14.8% to a target of 10.0% over 5 years, discounted at a WACC of 9.0%, Telos Corporation (TLS) has an intrinsic value of $1.64 per share (range: $0.55 – $5.08).

Key Assumptions

Current Operating Margin

-14.8%

Target Operating Margin

10.0%

WACC

9.0%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

5.0%

Target CapEx/Rev

8.8%

D&A/Revenue

5.9%

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	194	17.5%	-9.9%	-19	-19	11	(10)	17	-36	-34
2027	222	14.6%	-4.9%	-11	-11	13	(13)	4	-15	-13
2028	283	27.3%	0.1%	0	0	17	(17)	9	-10	-8
2029	257	-9.2%	5.0%	13	10	15	(17)	-4	13	9
2030	233	-9.2%	10.0%	23	18	14	(16)	-4	20	13
2031	216	-7.2%	10.0%	22	17	13	(16)	-3	17	10
2032	205	-5.1%	10.0%	20	16	12	(16)	-2	14	8
2033	199	-3.1%	10.0%	20	16	12	(16)	-1	12	6
2034	197	-1.1%	10.0%	20	16	12	(17)	-0	11	5
2035	199	1.0%	10.0%	20	16	12	(18)	0	10	4

Enterprise Value Bridge

Sum of PV(FCFF)2

Terminal Value (Gordon Growth at 3.0%)164

PV of Terminal Value73

Enterprise Value74

(–) Net Debt-45

Equity Value119

(÷) Shares Outstanding73

Fair Value per Share$1.64

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.0%	7.0%	10.0%	13.0%	16.0%
7.0%	$-0	$1	$3	$4	$5
8.0%	$-0	$1	$2	$3	$4
9.0%	$-0	$1	$2	$3	$3
10.0%	$-0	$1	$1	$2	$3
11.0%	$-0	$1	$1	$2	$3

Current price: $4.18. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 15.7% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Telos Corporation (TLS) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$2.47

Market Price

$4.18

Upside / Downside

-40.9%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-14.8%

Target Operating Margin

10.0%

WACC

9.0%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

5.0%

Target CapEx/Rev

8.8%

D&A/Revenue

5.9%

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	194	17.5%	-9.9%	-19	-19	11	(11)	17	-36	-35
2027	222	14.6%	-4.9%	-11	-11	13	(14)	4	-17	-15
2028	283	27.3%	0.1%	0	0	17	(21)	9	-13	-11
2029	257	-9.2%	5.0%	13	10	15	(21)	-4	9	6
2030	233	-9.2%	10.0%	23	18	14	(21)	-4	15	10

Enterprise Value Bridge

Sum of PV(FCFF)-44

Terminal Value (Gordon Growth at 3.0%)262

PV of Terminal Value178

Enterprise Value135

(–) Net Debt-45

Equity Value180

(÷) Shares Outstanding73

Fair Value per Share$2.47

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.0%	7.0%	10.0%	13.0%	16.0%
7.0%	$1	$2	$4	$6	$7
8.0%	$0	$2	$3	$4	$6
9.0%	$0	$1	$2	$4	$5
10.0%	$0	$1	$2	$3	$4
11.0%	$0	$1	$2	$3	$3

Current price: $4.18. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 15.7% 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

$3.14

Market Price

$4.18

Upside / Downside

-24.9%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Telos Corporation (TLS) has a fair value of $3.14 based on 8 comparable companies in the Information Technology Services industry.

EV/Revenue Valuation — Information Technology Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Telos CorporationTLS	305	1.6x	2.4x
Bandwidth Inc.BAND	573	1.6x	1.6x
OneSpan Inc.OSPN	413	1.4x	1.4x
Paysafe LimitedPSFE	391	1.0x	1.0x
TSS, Inc.TSSI	376	1.4x	1.7x
IBEX LimitedIBEX	372	0.8x	0.8x
Cerence Inc.CRNC	340	1.9x	1.5x
The Hackett Group, Inc.HCKT	339	1.3x	1.3x
Xerox Holdings CorporationXRX	158	0.6x	0.6x
Industry Median		1.3x	1.4x
(*) Revenue		165	107
= Enterprise Value		219	148
(-) Net Debt		-45	-45
Equity Value		264	193
(/) Outstanding shares		73	73
Fair Price		$4	$3

Selected Fair Value (avg of trailing + forward)

$3.14

-24.9%

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

$0.09 – $7.33

$2.47

-42.9%

Revenue DCF 10Y

$0.55 – $5.08

$1.64

-62.1%

▸ Trading Multiples

EV/Revenue

$2.88 – $4.13

$3.14

-27.4%

DCF Analysis

Telos Corporation (TLS) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$1.64

Market Price

$4.18

Upside / Downside

-60.8%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-14.8%

Target Operating Margin

10.0%

WACC

9.0%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

5.0%

Target CapEx/Rev

8.8%

D&A/Revenue

5.9%

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	194	17.5%	-9.9%	-19	-19	11	(10)	17	-36	-34
2027	222	14.6%	-4.9%	-11	-11	13	(13)	4	-15	-13
2028	283	27.3%	0.1%	0	0	17	(17)	9	-10	-8
2029	257	-9.2%	5.0%	13	10	15	(17)	-4	13	9
2030	233	-9.2%	10.0%	23	18	14	(16)	-4	20	13
2031	216	-7.2%	10.0%	22	17	13	(16)	-3	17	10
2032	205	-5.1%	10.0%	20	16	12	(16)	-2	14	8
2033	199	-3.1%	10.0%	20	16	12	(16)	-1	12	6
2034	197	-1.1%	10.0%	20	16	12	(17)	-0	11	5
2035	199	1.0%	10.0%	20	16	12	(18)	0	10	4

Enterprise Value Bridge

Sum of PV(FCFF)2

Terminal Value (Gordon Growth at 3.0%)164

PV of Terminal Value73

Enterprise Value74

(–) Net Debt-45

Equity Value119

(÷) Shares Outstanding73

Fair Value per Share$1.64

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.0%	7.0%	10.0%	13.0%	16.0%
7.0%	$-0	$1	$3	$4	$5
8.0%	$-0	$1	$2	$3	$4
9.0%	$-0	$1	$2	$3	$3
10.0%	$-0	$1	$1	$2	$3
11.0%	$-0	$1	$1	$2	$3

Current price: $4.18. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 15.7% 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

$3.14

Market Price

$4.18

Upside / Downside

-24.9%

Verdict

Overvalued

EV/Revenue Valuation — Information Technology Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Telos CorporationTLS	305	1.6x	2.4x
Bandwidth Inc.BAND	573	1.6x	1.6x
OneSpan Inc.OSPN	413	1.4x	1.4x
Paysafe LimitedPSFE	391	1.0x	1.0x
TSS, Inc.TSSI	376	1.4x	1.7x
IBEX LimitedIBEX	372	0.8x	0.8x
Cerence Inc.CRNC	340	1.9x	1.5x
The Hackett Group, Inc.HCKT	339	1.3x	1.3x
Xerox Holdings CorporationXRX	158	0.6x	0.6x
Industry Median		1.3x	1.4x
(*) Revenue		165	107
= Enterprise Value		219	148
(-) Net Debt		-45	-45
Equity Value		264	193
(/) Outstanding shares		73	73
Fair Price		$4	$3

Selected Fair Value (avg of trailing + forward)

$3.14

-24.9%