Advanced Energy Industries, Inc. (AEIS) DCF Valuation
Why we don't show a single “fair value” for AEIS
Even the optimistic scenario of a conservative trailing-FCF model ($67.74) sits far below today's price — the market is paying for growth and durability beyond what this model structure captures. Off today's cash-flow base, no plausible growth rate bridges to the current price — the market is valuing normalized future cash flows, not the depressed base. The model scenarios below are shown for reference only.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 2.6%/yr | 11.5% | $43.52 |
| Base case | 5.6%/yr | 10.5% | $53.67 |
| Optimistic | 8.6%/yr | 9.5% | $67.74 |
| Analyst DCF (FMP) | independent reference — different model | $62.67 | |
Current Price
$354.37
Market-Implied Growth
—
Base-Case Model Value
$53.67
model output — not a price target
AEIS DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for AEIS (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $125.3M · 0.04B shares · net cash $223.7M
Estimated Fair Value
$58.59
-83.5% vs $354.37
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.6%/yr FCF growth and 10-year horizon fixed. Green = above today's $354.37; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.5% | $70.79 | $73.79 | $77.28 | $81.41 | $86.37 |
| 9.5% | $62.10 | $64.20 | $66.59 | $69.35 | $72.56 |
| 10.5% | $55.38 | $56.89 | $58.59 | $60.52 | $62.72 |
| 11.5% | $50.03 | $51.15 | $52.40 | $53.79 | $55.36 |
| 12.5% | $45.67 | $46.53 | $47.46 | $48.50 | $49.65 |
About Advanced Energy Industries, Inc.
Advanced Energy Industries, Inc. (AEIS) is a global leader in the design, production, sale, and support of sophisticated power conversion, measurement, and control systems. The company specializes in plasma power technologies, providing a range of solutions such as direct current (DC), pulsed DC, low-frequency alternating current (LF AC), high-voltage, and radio frequency (RF) power supplies, alongside RF matching networks, RF instrumentation products, and remote plasma sources engineered for reactive gas applications. AEIS also supplies power control modules and thermal instrumentation, which are crucial for processes including rapid thermal processing, chemical vapor deposition, epitaxy, crystal growing, chemical processing, and in the manufacturing of metal, carbon fiber, and glass, as well as various other industrial power requirements. Its portfolio encompasses high-voltage DC-DC products, essential for semiconductor wafer processing and metrology, electrostatic substrate clamping, scientific instrumentation, mass spectrometry, and X-ray systems utilized in industrial and analytical fields. Additionally, low-voltage DC-DC board-mounted solutions are provided, serving applications in healthcare, telecommunications, test and measurement, instrumentation, industrial equipment, and distributed power systems for servers and storage. The company further develops gas sensing and monitoring products for the energy sector, air quality surveillance, and automotive emission testing. It also offers embedded power solutions specifically designed for medical equipment or compliant with IEC 60950-1 standards for information technology devices. Beyond its product offerings, AEIS provides comprehensive services such as conversions, upgrades, refurbishments, and the sale of pre-owned equipment, alongside dedicated repair services to its clientele. Distribution of its products occurs through a multi-channel approach, including a direct sales team, independent sales representatives, channel partners, and a network of distributors. Established in 1981, Advanced Energy Industries, Inc. maintains its corporate headquarters in Denver, Colorado.
- Sector
- Industrials
- Industry
- Electrical Equipment & Parts
- CEO
- Stephen D. Kelley