ATER - Artificial Intelligence Investments Will Likely Push Aterian's Price Up

• Aterian, Inc. supplies artificial intelligence, machine learning, and massive quantities of data to global e-commerce brands.
• Remember that what really matters is not the company’s products, but the company’s ability to sell to consumers exactly what they need.
• Third-party vendors need to sell in online retail channels such as Amazon.com and Walmart, in which Aterian, Inc. has a lot of expertise.
• With a WACC of 5.5%, a multiple of 45x, and a terminal free cash flow of $15 million, I obtained an equity valuation close to $550 million.
• I expect sales growth of 7.5%, which is close to the expected growth of the e-commerce market. Capital expenditures would increase gradually from $0.09 million to $0.5 million.

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