Why we don't show a single “fair value” for RMCO
A trailing-FCF DCF can't fairly anchor Royalty Management Holding Corporation right now — free cash flow has been negative in recent years; free cash flow is currently depressed by a heavy investment cycle while revenue keeps growing. For a company in this position, trailing free cash flow understates what the business actually earns for owners, so any “fair value” built on it would be misleadingly low. 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 | 15.0%/yr | 8.5% | $0.33 |
| Base case | 18.0%/yr | 7.5% | $0.46 |
| Optimistic | 20.0%/yr | 6.5% | $0.64 |
Current Price
$2.50
Market-Implied Growth
N/A
Base-Case Model Value
$0.46
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for RMCO (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 $183649 · 0.02B shares · net debt $212334
Estimated Fair Value
$0.46
-81.6% vs $2.50
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 18.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $2.50; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.5% | $0.61 | $0.69 | $0.80 | $0.95 | $1.18 |
| 6.5% | $0.48 | $0.53 | $0.59 | $0.67 | $0.77 |
| 7.5% | $0.39 | $0.42 | $0.46 | $0.51 | $0.57 |
| 8.5% | $0.33 | $0.35 | $0.38 | $0.41 | $0.44 |
| 9.5% | $0.28 | $0.30 | $0.32 | $0.34 | $0.36 |
