Edarat Communication and Information Technology Co. (9557) fair value: what the stock is really worth
As of Oct 28, 2026: fair value (intrinsic value) of Edarat Communication and Information Technology Co. stock SAR 112, price SAR 255, upside -56.1%, quality 55 out of 100. Rating: strongly overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Oct 27, 2026.
How to read this chart
46‑month range 19.62 SAR – 134,652 SAR · fair‑value band 47.32 SAR – 139.00 SAR · the 254.60 SAR price screens above the 111.80 SAR fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Oct 27, 2026.
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Edarat Communication and Information Technology Co. operates as a technology services company in the Kingdom of Saudi Arabia and internationally. The company operates through two segments, Data Center Engineering Services and Cloud Services.
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It offers consulting and planning, design and engineering, construction management, facility management, CFD analysis, site selection, testing and commissioning, facility assessment, and cloud services.
The company also provides virtual network operator services, colocation services, system analysis, design and programming of software, management and monitoring of communications and information networks, and web hosting infrastructure and related services, as well as offers data center engineering and IT modernization related services.
It serves banks, telecom operators, defense and security, and oil and gas businesses. Edarat Communication and Information Technology Co. was founded in 2004 and is headquartered in Riyadh, Saudi Arabia.
Stock analysis
Edarat Communication and Information Technology Co. (9557) currently trades at 254.60 SAR, while our model-based Fair Value estimate is 111.80 SAR, 56.1% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of 243.34 SAR per share, and 0 of the 24 models we run sit above the 254.60 SAR price.
Bear case: the Economic Profit group reads lowest at 39.70 SAR, and 24 of the 24 models stay below the price. Data coverage for this calculation is medium.
Scenario range: 47.32 SAR (bear) to 139.00 SAR (bull), the price of 254.60 SAR 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 55/100 (solid quality), in the Technology sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Edarat Communication and Information Technology Co. reported revenue of 192M SAR in FY2025 versus 37.3M SAR in FY2021, a compound +50.7%/yr. Reported net income was 36.3M SAR in FY2025, compounding +53.9%/yr from FY2021.
Key figures
Market cap 1.8B SAR (≈ $488M) Small · P/E ratio 47.1 · P/S ratio 9.20 · EPS (TTM) 5.41 SAR · Net margin 19.6% · Return on equity 42.7% · Return on assets (EBIT) 31.1% · Operating margin 23.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 84 out of 100 (low confidence).
What moves the price
The share trades about 16% below its 52-week high and 82% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at 35% fair-value upside, at −56%, 9557 screens richer than that median.
Fair Value models
Bear47.32 SARFair Value 111.80 SARBull139.00 SAR
Price 254.60 SAR · Upside -56.1%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (4.48 SAR per share) are deliberately not added.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.Coverage ⓘCoverage = 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.
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.91/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+84.0%
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.
+48.4%
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.
+44.4%
Start year 2020 (pandemic)
’20
’21
’22
’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.
−40.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year−40.8%
Dividend (yield on the price)0.0%
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.15% → 21%
Growth Forecast
Price in line with expectations
The price assumes about as much growth as 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).
+41.7%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (Saudi Arabia: IMF forecast 2.1% a year to 2030, 1.7% from 2016 to 2025) that is about +38.9% a year for the price.
Compare Edarat Communication and Information Technology Co. with another stock
Price, fair value, quality and upside side by side.
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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 · 466 stocks
Beats the industry median on 6/13 measures
A mixed picture versus its industry peers.
Valuation
Quality Score55 · Below median
Fair Value upside−56.1% · Bottom 25%
Profitability
Return on equity (12 months)42.7% · Top 25%
Return on assets21.9% · Top 25%
Net margin (12 months)19.6% · Top 25%
Operating margin (12 months)23.5% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)21.9% · Top 25%
Balance sheet
Debt / equity0.04× · Below median
Valuation Multiplesvs Information Technology Services median · lower = cheaper
P/E (12 months)47.1× · Priciest 25%
P/B20.22× · Priciest 25%
P/S (12 months)9.20× · Priciest 25%
Price / free cash flow116.4× · Priciest 25%
EV/EBITDA37.6× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 41
FUTURE (revenue growth)100· sector 29
PAST (return on equity)100· sector 36
HEALTH (low debt)98· sector 98
DIVIDEND (yield)0· sector 40
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Edarat Communication and Information Technology Co. Fair Value". https://www.fairvalue-calculator.com/stock/9557
Frequently asked questions
Is Edarat Communication and Information Technology Co. (9557) overvalued or undervalued?
As of Oct 27, 2026, our model estimates a fair value of 111.80 SAR versus a price of 254.60 SAR, about −56% upside (overvalued).
What is the fair value of 9557?
Our model-based fair value for Edarat Communication and Information Technology Co. is 111.80 SAR (as of Oct 27, 2026), built from audited fundamentals. The current price: 254.60 SAR.
What is the quality score of 9557?
Edarat Communication and Information Technology Co. has a Quality Score of 55/100. 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 Edarat Communication and Information Technology Co. (9557)?
Our model-based price target is the fair value of 111.80 SAR (as of Oct 27, 2026) from 24 valuation models. Cautious scenario 47.32 SAR, optimistic scenario 139.00 SAR. It is a calculation from audited fundamentals, not an analyst target.
What is the Edarat Communication and Information Technology Co. stock forecast for 2026?
Our models put fair value at 111.80 SAR, about −56% upside versus a price of 254.60 SAR (overvalued). Cautious scenario 47.32 SAR, optimistic scenario 139.00 SAR. The calculation is refreshed regularly with new filings.
What is the revenue of Edarat Communication and Information Technology Co. (9557)?
Edarat Communication and Information Technology Co. reported trailing-twelve-month revenue of about 209M SAR (latest available figure, as of Oct 27, 2026).
What growth is priced into Edarat Communication and Information Technology Co. (9557)?
For today's price to be fair in a discounted-cash-flow model, Edarat Communication and Information Technology Co. would have to grow free cash flow by +41.7 % per year for five years (discount rate 11.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +44.4 % per year. As of Oct 27, 2026.
What discount rate (WACC) does the fair value of 9557 use?
Our models discount Edarat Communication and Information Technology Co. at 11.8 %: a base by market capitalisation (small), country premium for Saudi Arabia. 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 Edarat Communication and Information Technology Co. that is +41.7 % per year a year over ten years, using the same discount rate (11.8 %) and the same formula as our fair value.
How much growth has Edarat Communication and Information Technology Co. (9557) delivered so far?
Over the past 5 years revenue at Edarat Communication and Information Technology Co. grew +44.4 % a year. The price currently implies +41.7 % 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 Edarat Communication and Information Technology Co. (9557) growing?
The median revenue growth in the sector is +10.8 % a year. That is the yardstick for the growth priced into Edarat Communication and Information Technology Co. (+41.7 % 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 Edarat Communication and Information Technology Co. (9557)?
The free-cash-flow yield on the price is 1.29 %: that much free cash flow Edarat Communication and Information Technology Co. produces per unit of market value. When it exceeds the discount rate of our models (11.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Edarat Communication and Information Technology Co. (9557)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Edarat Communication and Information Technology Co. it is 111.80 SAR per share (as of Oct 27, 2026), against a price of 254.60 SAR. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Edarat Communication and Information Technology Co. stock overvalued or undervalued in 2026?
As of Oct 27, 2026, 9557 trades above its calculated fair value: price 254.60 SAR, fair value 111.80 SAR, a gap of about −56% (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 9557?
No. The price is what the market pays today (254.60 SAR); the fair value is what the company's own numbers justify (111.80 SAR). For Edarat Communication and Information Technology Co. the two are 142.80 SAR per share apart. That gap is exactly why we show both numbers side by side.
How much is Edarat Communication and Information Technology Co. worth?
The market values Edarat Communication and Information Technology Co. at about 1.8B SAR (market capitalisation, as of Oct 27, 2026). Per share that is 254.60 SAR; our models calculate a fair value of 111.80 SAR per share.
What do the bullish and bearish scenarios say about 9557?
Our models span a range for Edarat Communication and Information Technology Co.: cautious scenario 47.32 SAR, base 111.80 SAR, optimistic 139.00 SAR per share (as of Oct 27, 2026, price 254.60 SAR). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 9557?
Edarat Communication and Information Technology Co. trades at a price-to-earnings ratio of 47.1 (as of Oct 27, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of 111.80 SAR is built from several models across several years. Other multiples: P/B 20.2, P/S 9.2, EV/EBITDA 37.6.
How solid is the balance sheet of Edarat Communication and Information Technology Co. (9557)?
Balance-sheet figures for Edarat Communication and Information Technology Co. (as of Oct 27, 2026): return on equity 42.7%, debt of 0.04 per unit of equity. They feed the Quality Score of 55/100, which measures business quality independently of the share price.
How far is 9557 from its 52-week high?
Edarat Communication and Information Technology Co. trades at 254.60 SAR, about 16% below its 52-week high of 304.00 SAR and 82% above the low of 140.27 SAR (as of Oct 28, 2026). Distance from the high says nothing about value: that is what the fair value of 111.80 SAR is for.
Which stocks are comparable to Edarat Communication and Information Technology Co.?
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 Edarat Communication and Information Technology Co. stock attractive at the current price?
The data as of Oct 27, 2026: price 254.60 SAR, calculated fair value 111.80 SAR (−56%), Quality Score 55/100, from 24 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 9557 calculated?
We run Edarat Communication and Information Technology Co. through 24 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 111.80 SAR, 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 13.4 % above its aggregate fair value. Edarat Communication and Information Technology Co. 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 Edarat Communication and Information Technology Co. (9557)?
The closing price on Oct 28, 2026 was 254.60 SAR. Our model-based fair value is 111.80 SAR, about −56% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Edarat Communication and Information Technology Co. right now?
The price sits above even our optimistic bull case (139.00 SAR). The favourable scenario is already priced in. The model range is unusually wide (47.32 SAR to 139.00 SAR). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid but not exceptional quality (55/100) and above fair value, neither a clear bargain nor a standout compounder.
Key figures of Edarat Communication and Information Technology Co.
How large is the market capitalisation of Edarat Communication and Information Technology Co. (9557)?
The market capitalisation of Edarat Communication and Information Technology Co. is 1.8B SAR (≈ $488M). 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 Edarat Communication and Information Technology Co. (9557)?
The price-to-sales ratio of Edarat Communication and Information Technology Co. is 9.20 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Edarat Communication and Information Technology Co. (9557)?
Earnings per share at Edarat Communication and Information Technology Co. are 5.41 SAR (price ÷ EPS = P/E 47.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Edarat Communication and Information Technology Co. (9557)?
The net margin of Edarat Communication and Information Technology Co. is 19.6% (last twelve months). 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 Edarat Communication and Information Technology Co. (9557)?
The return on equity (ROE) of Edarat Communication and Information Technology Co. is 42.7% (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 Edarat Communication and Information Technology Co. (9557)?
On an EBIT basis the return on assets of Edarat Communication and Information Technology Co. is 31.1% (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 Edarat Communication and Information Technology Co. (9557)?
The operating margin of Edarat Communication and Information Technology Co. is 23.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Edarat Communication and Information Technology Co. (9557)?
Revenue at Edarat Communication and Information Technology Co. is growing +21.9% versus a year earlier (3y avg +48.4%). 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 Edarat Communication and Information Technology Co. (9557)?
Earnings per share at Edarat Communication and Information Technology Co. are growing +29.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Edarat Communication and Information Technology Co. (9557) hold?
Edarat Communication and Information Technology Co. holds more cash than debt, 22.5M SAR net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Some data
Oct 27, 2026