Edarat Communication and Information Technology Co. (9557) fair value: what the stock is really worth
We calculate from audited financials what Edarat Communication and Information Technology Co. is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 13, 2026.
How to read this chart
45‑month range 19.62 SAR – 134,652 SAR · fair‑value band 44.67 SAR – 252.79 SAR · the 265.00 SAR price screens above the 111.80 SAR fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 13, 2026.
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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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. 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 265.00 SAR, while our model-based Fair Value estimate is 111.80 SAR, implying the stock looks roughly 137.0% 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 26 models we run sit above the 265.00 SAR price.
Bear case: the Growth DCF group reads lowest at 65.85 SAR, and 26 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: 44.67 SAR (bear) to 252.79 SAR (bull), the price of 265.00 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 2.1B SAR (≈ $551M) · P/E ratio 54.9 · P/S ratio 10.4 · EPS (TTM) 4.83 SAR · Dividend yield 0.1% · Net margin 18.9% · Return on equity 46.0% · Return on assets (EBIT) 31.1%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
For context, the median of 10 Technology peers we cover trades at 66% fair-value upside, at −58%, 9557 screens richer than that median.
Fair Value models
Bear 44.67 SARFair Value 111.80 SARBull 252.79 SAR
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. Based on fiscal year 2025 figures (about 8 months old). Earnings retained since then (3.40 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.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.
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%
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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.
−40.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year−40.8%
Dividend (yield on the price)0.1%
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).
+42.6%
Yearly growth needed for the next five years to justify today's 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 · 479 stocks
Beats the industry median on 6/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score55 · Below median
Fair Value upside−59% · Bottom 25%
Profitability
Return on equity (TTM)46% · Top 25%
Return on assets20% · Top 25%
Net margin (TTM)19% · Top 25%
Operating margin (TTM)20% · Top 25%
Growth and dividend
Revenue growth99% · Top 25%
Dividend yield (TTM)0.1% · Bottom 25%
Balance sheet
Debt / equity0.04× · Below median
Valuation Multiplesvs Information Technology Services median · lower = cheaper
P/E (TTM)54.9× · Priciest 25%
P/B5.80× · Priciest 25%
P/S (TTM)2.87× · Priciest 25%
P/FCF33.4× · Priciest 25%
EV/EBITDA11.7× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 39
FUTURE (revenue growth)100· sector 31
PAST (return on equity)100· sector 34
HEALTH (low debt)98· sector 97
DIVIDEND (yield)0· sector 41
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 Sep 13, 2026, our model estimates a fair value of 111.80 SAR versus a price of 265.00 SAR, about −58% 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 Sep 13, 2026), built from audited fundamentals. The current price: 265.00 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 Sep 13, 2026) from 26 valuation models. Cautious scenario 44.67 SAR, optimistic scenario 252.79 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 −58% upside versus a price of 265.00 SAR (overvalued). Cautious scenario 44.67 SAR, optimistic scenario 252.79 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 192M SAR (latest available figure, as of Sep 13, 2026).
Does Edarat Communication and Information Technology Co. pay a dividend?
Edarat Communication and Information Technology Co. currently shows a dividend yield of about 0.08% relative to its recent price (as of Sep 13, 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 +42.6 % 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 Sep 13, 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 +42.6 % 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 +42.6 % 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 Edarat Communication and Information Technology Co. (9557) growing?
The median revenue growth in the sector is +8.1 % a year. That is the yardstick for the growth priced into Edarat Communication and Information Technology Co. (+42.6 % 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 Edarat Communication and Information Technology Co. (9557)?
The free-cash-flow yield on the price is 1.24 %: 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 Sep 13, 2026), against a price of 265.00 SAR. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Edarat Communication and Information Technology Co. stock overvalued or undervalued in 2026?
As of Sep 13, 2026, 9557 trades above its calculated fair value: price 265.00 SAR, fair value 111.80 SAR, a gap of about −58% (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 (265.00 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 153.20 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 2.1B SAR (market capitalisation, as of Sep 13, 2026). Per share that is 265.00 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 44.67 SAR, base 111.80 SAR, optimistic 252.79 SAR per share (as of Sep 13, 2026, price 265.00 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 54.9 (as of Sep 13, 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 5.8, P/S 2.9, EV/EBITDA 11.7.
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 Sep 13, 2026): return on equity 46.0%, 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.
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 Sep 13, 2026: price 265.00 SAR, calculated fair value 111.80 SAR (−58%), Quality Score 55/100, from 26 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 26 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 15.8 % 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 should I pay attention to with Edarat Communication and Information Technology Co. right now?
The price sits above even our optimistic bull case (252.79 SAR). The favourable scenario is already priced in. The model range is unusually wide (44.67 SAR to 252.79 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 2.1B SAR (≈ $551M). 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 10.4 (P/E × margin). 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 4.83 SAR (price ÷ EPS = P/E 54.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Edarat Communication and Information Technology Co. (9557)?
The dividend yield of Edarat Communication and Information Technology Co. is 0.1% (payout 4.6%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Edarat Communication and Information Technology Co. (9557)?
The net margin of Edarat Communication and Information Technology Co. is 18.9% (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 Edarat Communication and Information Technology Co. (9557)?
The return on equity (ROE) of Edarat Communication and Information Technology Co. is 46.0% (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 19.9% (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 +98.8% 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 +61.3% 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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