Daou Technology Inc.

Fair Value Summary

Current Price	$41,150.00
5Y Range	2,229,767.61 – 4,991,853.60
5Y Selected	3,610,810.60
(-) Safety Margin	65.92%
5Y Buy Price	$1,324,445.33
Upside (to Buy Price)	3,118.58%
10Y Range	1,927,847.28 – 3,952,548.49
10Y Selected	2,940,197.89
(-) Safety Margin	65.92%
10Y Buy Price	$1,078,464.59
Upside (to Buy Price)	2,520.81%

Company Predictability & Safety

Metric	Value
Revenue R2 (5Y)	0.9650
Revenue R2 (10Y)	0.9286
Net Income R2 (5Y)	0.5811
Net Income R2 (10Y)	0.2910
EBITDA R2 (5Y)	0.0078
EBITDA R2 (10Y)	0.6375
FCF R2 (5Y)	0.4094
FCF R2 (10Y)	0.6576

Safety Score	0.3668

DA 10-Year Projection

Metric	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034
% Growth	24.69%	22.39%	20.09%	17.79%	15.49%	13.19%	10.90%	8.60%	6.30%	4.00%
Revenue	14,495,752.36	17,741,007.29	21,305,028.99	25,095,347.04	28,983,185.13	32,807,172.47	36,381,632.02	39,509,326.97	41,997,803.49	43,677,715.63
EBITDA	1,740,757.35	2,130,471.60	2,558,465.74	3,013,635.21	3,480,515.62	3,939,728.35	4,368,975.94	4,744,572.72	5,043,407.42	5,245,143.72
D&A	-129,305.28	-158,253.67	-190,045.52	-223,855.99	-258,536.36	-292,647.16	-324,532.12	-352,431.85	-374,629.60	-389,614.79
EBIT	1,611,452.06	1,972,217.94	2,368,420.21	2,789,779.22	3,221,979.26	3,647,081.19	4,044,443.81	4,392,140.87	4,668,777.82	4,855,528.93
Pro forma Taxes	-429,568.81	-525,739.07	-631,355.71	-743,678.43	-858,891.08	-972,211.56	-1,078,137.51	-1,170,823.99	-1,244,567.79	-1,294,350.50
NOPAT	1,181,883.25	1,446,478.86	1,737,064.51	2,046,100.79	2,363,088.18	2,674,869.63	2,966,306.30	3,221,316.89	3,424,210.03	3,561,178.43
Capital Expenditures	-166,760.65	-204,094.40	-245,095.28	-288,699.49	-333,425.58	-377,417.13	-418,538.09	-454,519.42	-483,147.11	-502,472.99
NWC Investment	2,224,946.46	2,515,900.50	2,763,026.08	2,938,463.48	3,014,066.39	2,964,565.77	2,771,118.07	2,424,761.53	1,929,204.17	1,302,360.49
(+) D&A	129,305.28	158,253.67	190,045.52	223,855.99	258,536.36	292,647.16	324,532.12	352,431.85	374,629.60	389,614.79
Free Cash Flow	3,369,374.36	3,916,538.63	4,445,040.84	4,919,720.77	5,302,265.34	5,554,665.43	5,643,418.41	5,543,990.84	5,244,896.69	4,750,680.71
Diluted Shares Outstanding	43,152,000.00	43,152,000.00	43,152,000.00	43,152,000.00	43,152,000.00	43,152,000.00	43,152,000.00	43,152,000.00	43,152,000.00	43,152,000.00

Discounting Periods

Metric	Dec-25	Dec-26	Dec-27	Dec-28	Dec-29	Dec-30	Dec-31	Dec-32	Dec-33	Dec-34
Period Start	9/30/25	1/1/26	1/1/27	1/1/28	1/1/29	1/1/30	1/1/31	1/1/32	1/1/33	1/1/34
Period End	12/31/25	12/31/26	12/31/27	12/31/28	12/31/29	12/31/30	12/31/31	12/31/32	12/31/33	12/31/34
Mid-Point	11/15/25	7/2/26	7/2/27	7/1/28	7/2/29	7/2/30	7/2/31	7/1/32	7/2/33	7/2/34
Time (t)	0.10	0.46	1.46	2.46	3.46	4.46	5.46	6.46	7.46	8.46
Valuation Date	1/16/26

Base Case Projected Flows

WACC: 6.83%Terminal Growth: 3.08%

Metric	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034	TV (5y)	TV (10y)
Discount Factor	0.99	0.97	0.91	0.85	0.80	0.74	0.70	0.65	0.61	0.57
PV UFCF	3,347,202.19	3,799,380.14	4,036,573.84	4,182,196.29	4,219,414.85	4,137,857.09	3,935,379.73	3,619,042.73	3,205,051.09	2,717,569.59	Raw: 145,955,661.86 112,376,401.97	Raw: 130,772,170.46 72,377,498.51

Base Case Valuation

	5-Year Horizon	10-Year Horizon
	UFCF	UFCF
Enterprise Value	131,961,169.29	109,577,166.06
(-) Net Debt	18,017.22	18,017.22
Equity Value	131,943,152.07	109,559,148.84
(/) Shares Out	43.15	43.15
Fair Value	$3,057,637.01	$2,538,912.42
(-) Safety Margin	65.92%	65.92%
Buy Price	$1,042,042.69	$865,261.35
Current Price	$41,150.00	$41,150.00
Upside (to Buy Price)	2,432.30%	2,002.70%

Conservative Projected Flows

WACC: 7.83%Terminal Growth: 2.58%

Metric	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034	TV (5y)	TV (10y)
Discount Factor	0.99	0.97	0.90	0.83	0.77	0.71	0.66	0.61	0.57	0.53
PV UFCF	3,344,084.87	3,783,130.56	3,982,033.59	4,087,425.67	4,085,555.56	3,969,426.99	3,740,179.22	3,407,633.79	2,989,837.60	2,511,578.48	Raw: 103,706,378.09 76,954,718.70	Raw: 92,917,999.76 47,307,596.92

Conservative Valuation

	5-Year Horizon	10-Year Horizon
	UFCF	UFCF
Enterprise Value	96,236,948.95	83,208,483.25
(-) Net Debt	18,017.22	18,017.22
Equity Value	96,218,931.73	83,190,466.03
(/) Shares Out	43.15	43.15
Fair Value	$2,229,767.61	$1,927,847.28
(-) Safety Margin	65.92%	65.92%
Buy Price	$759,904.80	$657,010.35
Current Price	$41,150.00	$41,150.00
Upside (to Buy Price)	1,746.67%	1,496.62%

Aggressive Projected Flows

WACC: 5.83%Terminal Growth: 3.58%

Metric	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034	TV (5y)	TV (10y)
Discount Factor	0.99	0.97	0.92	0.87	0.82	0.78	0.73	0.69	0.66	0.62
PV UFCF	3,350,351.78	3,815,853.34	4,092,384.66	4,280,086.85	4,358,981.43	4,315,120.22	4,142,749.55	3,845,743.96	3,438,002.86	2,942,636.20	Raw: 244,670,446.34 195,528,825.77	Raw: 219,217,842.65 131,996,478.99

Aggressive Valuation

	5-Year Horizon	10-Year Horizon
	UFCF	UFCF
Enterprise Value	215,426,483.83	170,578,389.84
(-) Net Debt	18,017.22	18,017.22
Equity Value	215,408,466.61	170,560,372.62
(/) Shares Out	43.15	43.15
Fair Value	$4,991,853.60	$3,952,548.49
(-) Safety Margin	65.92%	65.92%
Buy Price	$1,701,223.71	$1,347,028.53
Current Price	$41,150.00	$41,150.00
Upside (to Buy Price)	4,034.20%	3,173.46%

Reverse DCF: Market Implied Growth

Current Price$41,150.00

WACC Used6.8%

IMPLIED REVENUE GROWTH56.64%

Metric	2027	2028	2029	2030	2031	2032	2033	2034	2035	2036
Implied Revenue	24,349,619.04	38,141,395.45	59,744,920.22	93,584,816.44	146,591,841.38	229,622,376.53	359,681,925.74	563,408,016.48	882,525,838.32	1,382,393,988.93
Constant Implied Growth	56.64%	56.64%	56.64%	56.64%	56.64%	56.64%	56.64%	56.64%	56.64%	56.64%
Implied Free Cash Flow	2,434.96	3,814.14	5,974.49	9,358.48	14,659.18	22,962.24	35,968.19	56,340.80	88,252.58	138,239.40
Discount Factor	0.95	0.85	0.80	0.74	0.70	0.65	0.61	0.57	0.54	0.50
Present Value of Implied FCF	2,305.12	3,242.35	4,754.36	6,971.45	10,222.43	14,989.44	21,979.44	32,229.08	47,258.41	69,296.34

Rolling Historical DCF (Backtest)

Valuation based on actual realized growth.

Year	Valuation Date	Actual Price	Realized Growth (5Y)	Calculated Fair Value	Valuation Delta
2019	2019-12-31	$19,000.00	22.87%	$-2,916,672.12	-15,450.91%
2018	2018-12-31	$19,100.00	31.19%	$-1,926,935.00	-10,188.66%
2017	2017-12-31	$19,550.00	36.01%	$-1,330,407.49	-6,905.15%
2016	2016-12-31	$18,000.00	37.72%	$-622,641.93	-3,559.12%
2015	2015-12-31	$21,800.00	35.88%	$-316,900.17	-1,553.67%
2014	2014-12-31	$11,950.00	26.83%	$-245,361.80	-2,153.24%
2013	2013-12-31	$15,150.00	23.27%	$136,139.02	798.61%
2012	2012-12-31	$16,600.00	45.29%	$-69,944.15	-521.35%
2011	2011-12-31	$10,300.00	52.85%	$-274,385.28	-2,763.93%
2010	2010-12-31	$8,550.00	43.46%	$347,746.97	3,967.22%
2009	2009-12-31	$7,500.00	-1.43%	$-92,202.28	-1,329.36%
2008	2008-12-31	$4,270.00	-36.92%	$5,218.21	22.21%
2007	2007-12-31	$10,150.00	-28.87%	$15,626.95	53.96%

Monte Carlo Simulation (1,000 Iterations)

Mean Fair Value
$2,785,920.92

Median
$2,539,923.20

10th Percentile
$1,926,041.30

90th Percentile
$3,921,669.93

Fair Value Distribution

$1,474,057.81 - $1,944,204.13	107
$1,944,204.13 - $2,414,350.45	300
$2,414,350.45 - $2,884,496.77	256
$2,884,496.77 - $3,354,643.09	160
$3,354,643.09 - $3,824,789.41	67
$3,824,789.41 - $4,294,935.73	49
$4,294,935.73 - $4,765,082.05	21
$4,765,082.05 - $5,235,228.37	13
$5,235,228.37 - $5,705,374.68	11
$5,705,374.68 - $6,175,521.00	8
$6,175,521.00 - $6,645,667.32	2
$6,645,667.32 - $7,115,813.64	1
$7,115,813.64 - $7,585,959.96	0
$7,585,959.96 - $8,056,106.28	1
$8,056,106.28 - $8,526,252.60	1
$8,526,252.60 - $8,996,398.92	1
$8,996,398.92 - $9,466,545.23	1
$9,466,545.23 - $9,936,691.55	0
$9,936,691.55 - $10,406,837.87	0
$10,406,837.87 - $10,876,984.19	1