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Microware Group Ltd (1985) fair value: what the stock is really worth
As of Sep 30, 2026: fair value of Microware Group Ltd HK$0.76, price HK$2.27, upside -66.5%, quality 64 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? No
- Good quality? Yes
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Thin data
Sep 27, 2026
Microware Group Ltd
1985 · HKStretched ValuationStrong overvaluation with only moderate quality.
!Fair value HK$0.7600 · Strongly overvalued (−66.5%)
✓Quality 64/100
!Weak Growth (revenue 5y +1.8 %/yr)
!Loss over the last twelve months · -0.1% net margin (TTM) · fiscal year 2025 0.5%
✓generates free cash flow
!Trails peers (4/11)
!Narrow moat 22/100
!Evidence only low, so the estimate is less certain
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What runs behind every stock
26
valuation models
8 families, DCF to NCAV
37
quality factors
margins, balance sheet, cashflow, debt
6
AI factors
moat, what no ratio measures
2,000+
data points
verified, per stock, median
69 individual criteria per stock, every one traceable See the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 27, 2026.
How to read this chart
60‑month range HK$0.5851 – HK$3.81 · fair‑value band HK$0.5700 – HK$0.9500 · the HK$2.27 price screens above the HK$0.7600 fair value. Dashed = 300-day average. As of Sep 27, 2026.
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Company profile
Microware Group Limited, an investment holding company, provides information technology (IT) infrastructure solutions and IT managed services in Hong Kong. The company procures semiconductor, hardware, and software products, including design of solutions services.
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Microware Group Limited, an investment holding company, provides information technology (IT) infrastructure solutions and IT managed services in Hong Kong. The company procures semiconductor, hardware, and software products, including design of solutions services. It also offers maintenance, support, and management services, as well as implementation services of the IT infrastructure solutions. In addition, the company provides consultancy and advisory services. Microware Group Limited was founded in 1985 and is headquartered in Kwun Tong, Hong Kong.
Stock analysis
Microware Group Ltd (1985) currently trades at HK$2.27, while our model-based Fair Value estimate is HK$0.7600, 66.5% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of HK$2.53 per share, and 7 of the 23 models we run sit above the HK$2.27 price.
Bear case: the Earnings-Based group reads lowest at HK$0.4700, and 16 of the 23 models stay below the price. Evidence for this calculation is low.
Scenario range: HK$0.5700 (bear) to HK$0.9500 (bull), the price of HK$2.27 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 64/100 (solid quality), in the Technology sector.
Weak Growth: Revenue growth is weak: less than 2 % a year.
Microware Group Ltd reported revenue of HK$1.5B in FY2025 versus HK$1.1B in FY2021, a compound +7.6%/yr. Reported net income was HK$8.2M in FY2025, compounding −35.6%/yr from FY2021.
Key figures
Market cap HK$1.1B (≈ $138M) · P/S ratio 0.76 · Net margin 0.5% · Return on equity −0.8% · Return on assets (EBIT) 7.1% · Operating margin −0.5% · Revenue (TTM) HK$1.4B · Revenue growth (YoY) −8.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 42 out of 100 (low confidence).
What moves the price
The share trades about 40% below its 52-week high and 103% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at 53% fair-value upside, at −67%, 1985 screens richer than that median.
Fair Value models
Bear HK$0.5700
Fair Value HK$0.7600
Bull HK$0.9500
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model.
Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.
Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Highest evidence
FCF DCF
HK$2.73
HK$3.44
HK$4.28
80
Growth DCF
HK$2.75
HK$3.38
HK$4.09
77
Residual Income
HK$0.4900
HK$0.4700
HK$0.4600
76
All 23 models by family
DCF Models
FCF DCF
HK$2.73
HK$3.44
HK$4.28
80
Owner Earnings
HK$1.03
HK$1.19
HK$1.38
75
5Y Revenue Exit
HK$1.86
HK$2.22
HK$2.63
71
5Y EBITDA Exit
HK$2.30
HK$3.01
HK$3.80
74
5Y P/E Exit
HK$1.80
HK$2.11
HK$2.40
69
10Y Revenue Exit
HK$2.22
HK$2.60
HK$3.02
66
10Y EBITDA Exit
HK$2.48
HK$3.06
HK$3.76
67
10Y P/E Exit
HK$2.20
HK$2.53
HK$2.88
63
Earnings-Based
Graham-Dodd
HK$0.1800
HK$0.4700
HK$0.6100
65
PEG = 1.0
HK$0.0900
HK$0.1300
HK$0.1600
57
EPV
HK$0.8100
HK$0.8400
HK$0.8700
70
Multiples
P/E Multiple
HK$0.5700
HK$0.7600
HK$0.9500
63
P/S Multiple
HK$0.3500
HK$0.4600
HK$0.5800
58
P/B Multiple
HK$0.3500
HK$0.4600
HK$0.5800
55
EV/EBIT
HK$1.83
HK$2.26
HK$2.69
63
EV/EBITDA
HK$2.15
HK$2.69
HK$3.23
64
EV/Revenue
HK$1.19
HK$1.47
HK$1.75
52
Asset-Based
NCAV (Graham)
HK$0.3700
HK$0.5000
HK$0.7400
51
Growth DCF
Growth DCF
HK$2.75
HK$3.38
HK$4.09
77
Rev-Margin DCF
HK$1.86
HK$2.26
HK$2.73
71
Economic Profit
Residual Income
HK$0.4900
HK$0.4700
HK$0.4600
76
ROIC Compounder
HK$0.8200
HK$0.8700
HK$0.9100
70
Growth Earnings
Growth-Adj P/E
HK$0.4300
HK$0.6200
HK$0.8100
67
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Set up alert →Quality Score breakdown
Overall quality
64/100
Of which business quality 66 · Market factors (momentum, volatility) 63
Profitability
42
Margins and returns on capital today
Quality Growth
35
Are margins and returns improving?
Cashflow
65
Earnings quality: real cash, not paper profit
Fin. Strength
81
Balance sheet, leverage, solvency risk
Investment
80
Disciplined investing over empire-building
Low Volatility
47
Calm price path (market factor)
Momentum
70
Price trend over the last 3–12 months (market factor)
52W Momentum
70
Distance to the 52-week high (market factor)
Net Issuance
100
Share count: buybacks or dilution?
Revenue & earnings trend
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.
40/100
Revenue growth is weak: less than 2 % a year.
Revenue growth 1 year
+20.8%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.1%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+1.8%
Start year 2020 (pandemic). Over 10 years: +3.4% a year
Revenue growth 11 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.0%
’14
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’18
’19
’20
’21
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’23
’24
’25
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−26.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year−26.0%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−26.0% vs −10.6%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.4% → 1%
Start year 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−8.6%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (Hong Kong: IMF forecast 2.1% a year to 2030, 1.8% from 2016 to 2025) that is about −10.5% a year for the price.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Information Technology Services · 470 stocks
Beats the industry median on 4/10 measures
A mixed picture versus its industry peers.
Valuation Multiplesvs Information Technology Services median · lower = cheaper
Context: sector, industry, market
- Is the Information Technology sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Undervalued stocks: Hong Kong Stocks
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
None of the checked exposures detected
Similar stocks
10 more Information Technology Services stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| International Business Machines Corporation IBM | $225.51 | $186.56 | −17% |
| Accenture plc ACN | $176.11 | $305.06 | +73% |
| Tata Consultancy Services Limited TCS | ₹2,082 | ₹2,993 | +44% |
| Infosys Limited INFY | ₹994.10 | ₹1,691 | +70% |
| HCL Technologies Limited HCLTECH | ₹1,258 | ₹1,926 | +53% |
| Cognizant Technology Solutions Corporation CTSH | $56.84 | $138.62 | +144% |
| Amadeus IT Group AMS | €53.48 | €65.98 | +23% |
| Broadridge Financial Solutions, Inc BR | $163.77 | $159.88 | −2% |
| Fidelity National Information Services, Inc FIS | $33.35 | $32.72 | −2% |
| Wipro Limited WIPRO | ₹164.02 | ₹287.86 | +76% |
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Frequently asked questions
Is Microware Group Ltd (1985) overvalued or undervalued?
As of Sep 27, 2026, our model estimates a fair value of HK$0.7600 versus a price of HK$2.27, about −67% upside (overvalued).
What is the fair value of 1985?
Our model-based fair value for Microware Group Ltd is HK$0.7600 (as of Sep 27, 2026), built from audited fundamentals. The current price: HK$2.27.
What is the quality score of 1985?
Microware Group Ltd has a Quality Score of 64/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Microware Group Ltd (1985)?
Our model-based price target is the fair value of HK$0.7600 (as of Sep 27, 2026) from 23 valuation models. Cautious scenario HK$0.5700, optimistic scenario HK$0.9500. It is a calculation from audited fundamentals, not an analyst target.
What is the Microware Group Ltd stock forecast for 2026?
Our models put fair value at HK$0.7600, about −67% upside versus a price of HK$2.27 (overvalued). Cautious scenario HK$0.5700, optimistic scenario HK$0.9500. The calculation is refreshed regularly with new filings.
What is the revenue of Microware Group Ltd (1985)?
Microware Group Ltd reported trailing-twelve-month revenue of about HK$1.4B (latest available figure, as of Sep 27, 2026).
What growth is priced into Microware Group Ltd (1985)?
For today's price to be fair in a discounted-cash-flow model, Microware Group Ltd would have to grow free cash flow by -8.6 % per year for five years (discount rate 11.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +1.8 % per year. As of Sep 27, 2026.
What discount rate (WACC) does the fair value of 1985 use?
Our models discount Microware Group Ltd at 11.9 %: a base by market capitalisation (micro), damped by beta 0.58, country premium for Hong Kong. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Microware Group Ltd that is -8.6 % per year a year over ten years, using the same discount rate (11.9 %) and the same formula as our fair value.
How much growth has Microware Group Ltd (1985) delivered so far?
Over the past 5 years revenue at Microware Group Ltd grew +1.8 % a year. The price currently implies -8.6 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Microware Group Ltd (1985) growing?
The median revenue growth in the sector is +8.9 % a year. That is the yardstick for the growth priced into Microware Group Ltd (-8.6 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Microware Group Ltd (1985)?
The free-cash-flow yield on the price is 12.85 %: that much free cash flow Microware Group Ltd produces per unit of market value. When it exceeds the discount rate of our models (11.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Microware Group Ltd (1985)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Microware Group Ltd it is HK$0.7600 per share (as of Sep 27, 2026), against a price of HK$2.27. It is the blended result of 23 valuation models (cash flow, earnings, asset, dividend).
Is Microware Group Ltd stock overvalued or undervalued in 2026?
As of Sep 27, 2026, 1985 trades above its calculated fair value: price HK$2.27, fair value HK$0.7600, a gap of about −67% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 1985?
No. The price is what the market pays today (HK$2.27); the fair value is what the company's own numbers justify (HK$0.7600). For Microware Group Ltd the two are HK$1.51 per share apart. That gap is exactly why we show both numbers side by side.
How much is Microware Group Ltd worth?
The market values Microware Group Ltd at about HK$1.1B (market capitalisation, as of Sep 27, 2026). Per share that is HK$2.27; our models calculate a fair value of HK$0.7600 per share.
What do the bullish and bearish scenarios say about 1985?
Our models span a range for Microware Group Ltd: cautious scenario HK$0.5700, base HK$0.7600, optimistic HK$0.9500 per share (as of Sep 27, 2026, price HK$2.27). The range comes from different growth and margin assumptions, not from analyst opinions.
How solid is the balance sheet of Microware Group Ltd (1985)?
Balance-sheet figures for Microware Group Ltd (as of Sep 27, 2026): return on equity −0.8%. They feed the Quality Score of 64/100, which measures business quality independently of the share price.
How far is 1985 from its 52-week high?
Microware Group Ltd trades at HK$2.27, about 40% below its 52-week high of HK$3.81 and 103% above the low of HK$1.12 (as of Sep 30, 2026). Distance from the high says nothing about value: that is what the fair value of HK$0.7600 is for.
Which stocks are comparable to Microware Group Ltd?
From the same area (Technology) we also value International Business Machines Corporation, Accenture plc, Tata Consultancy Services Limited, Infosys Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Microware Group Ltd stock attractive at the current price?
The data as of Sep 27, 2026: price HK$2.27, calculated fair value HK$0.7600 (−67%), Quality Score 64/100, from 23 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 1985 calculated?
We run Microware Group Ltd through 23 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of HK$0.7600, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.7 % above its aggregate fair value. Microware Group Ltd itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Microware Group Ltd (1985)?
The closing price on Sep 30, 2026 was HK$2.27. Our model-based fair value is HK$0.7600, about −67% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Microware Group Ltd right now?
The price sits above even our optimistic bull case (HK$0.9500). The favourable scenario is already priced in. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid but not exceptional quality (64/100) and above fair value, neither a clear bargain nor a standout compounder.
Where does the earnings growth of Microware Group Ltd (1985) come from?
Earnings per share at Microware Group Ltd grew −0.2 % a year from 2014 to 2025. Broken into its drivers: revenue per share +2.5 %, EBIT margin −5.0 %, tax rate −0.3 %, residual (interest, one-offs) +2.8 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Microware Group Ltd
How large is the market capitalisation of Microware Group Ltd (1985)?
The market capitalisation of Microware Group Ltd is HK$1.1B (≈ $138M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Microware Group Ltd (1985)?
The price-to-sales ratio of Microware Group Ltd is 0.76 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What is the net margin of Microware Group Ltd (1985)?
The net margin of Microware Group Ltd is 0.5% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Microware Group Ltd (1985)?
The return on equity (ROE) of Microware Group Ltd is −0.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Microware Group Ltd (1985)?
On an EBIT basis the return on assets of Microware Group Ltd is 7.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Microware Group Ltd (1985)?
The operating margin of Microware Group Ltd is −0.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Microware Group Ltd (1985)?
Revenue at Microware Group Ltd is growing −8.6% versus a year earlier (3y avg +9.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Microware Group Ltd (1985)?
Earnings per share at Microware Group Ltd are growing −82.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Microware Group Ltd (1985) hold?
Microware Group Ltd holds more cash than debt, HK$90.9M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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