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Appen Limited (APX) Fair Value & Analysis

Technology · AU · Market cap A$236M

AL Appen Limited APX · AU
PriceA$1.40
Fair ValueA$0.5780
Upside-58.7%
Quality43/100
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Weak Growth
Loss-making · -9.4% net margin
Low debt · generates free cash flow
Trails peers (4/11)
Narrow moat 14/100
Evidence: Medium Range A$0.4760 – A$0.6885 Share as image

Fair value as of: Jul 20, 2026

From 11 valuation models · updated 21 days ago

Share price +54.7% over the past month.

Below-average quality, and screening another 59% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (A$0.6885). The favourable scenario is already priced in.
  • Weak quality (43/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

A$12.84 A$0.2650 Fair Value A$0.5780 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 20, 2026.

How to read this chart

60‑month range A$0.2650 – A$12.84 · fair‑value band A$0.4760 – A$0.6885 · the A$1.40 price screens above the A$0.5780 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 20, 2026.

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Analysis

Appen Limited (APX) currently trades at A$1.40, while our model-based Fair Value estimate is A$0.5780, implying the stock looks roughly 58.7% overvalued today. The Quality Score stands at 43/100 (below-average quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Appen Limited generated revenue of A$233M at a net margin of -9.4%. Revenue grew 6.7% year over year. It earns a return on equity of -20.9%. The balance sheet holds a net cash position of A$45.2M. Fundamentals as of Jul 20, 2026

Our scenario range runs from A$0.4760 (bear case) to A$0.6885 (bull case); at A$1.40, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 29% below its 52-week high and 115% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at -25% fair-value upside, at -59%, APX screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

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. Evidence
Highest evidence
Growth DCF A$0.8500 A$1.11 A$1.43 80
Rev-Margin DCF A$0.8500 A$1.23 A$1.68 74
EV/EBITDA A$0.6100 A$0.7400 A$0.8700 54
All 11 models by family
DCF Models
FCF DCF A$0.8500 A$1.14 A$1.51 38
Owner Earnings A$0.4100 A$0.4900 A$0.6000 31
5Y Revenue Exit A$0.8500 A$1.23 A$1.71 39
5Y EBITDA Exit A$0.6900 A$0.9100 A$1.16 41
10Y Revenue Exit A$0.8300 A$1.14 A$1.57 36
10Y EBITDA Exit A$0.7500 A$0.9500 A$1.20 37
Multiples
EV/EBITDA A$0.6100 A$0.7400 A$0.8700 54
EV/Revenue A$0.8900 A$1.17 A$1.46 43
Asset-Based
NCAV (Graham) A$0.1800 A$0.2400 A$0.3500 50
Growth DCF
Growth DCF A$0.8500 A$1.11 A$1.43 80
Rev-Margin DCF A$0.8500 A$1.23 A$1.68 74

Widest divergence: Growth DCF (A$1.11) versus Asset-Based (A$0.2400). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) A$233M
Revenue growth (YoY) +6.7%
Net margin -9.4%
Return on equity -20.9%
Free cash flow A$19.6M FY2025
Operating margin -1.1%
More key figures
EPS (TTM) A$-0.1200
EPS growth (YoY) +5.4%
Net cash A$45.2M FY2025

Figures from reported company fundamentals · as of Jul 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 43/100

Of which business quality 46 · Market factors (momentum, volatility) 37

Profitability 22
Margins and returns on capital today
Quality Growth 42
Are margins and returns improving?
Cashflow 55
Earnings quality: real cash, not paper profit
Fin. Strength 65
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 2
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 74
Distance to the 52-week high (market factor)
Net Issuance 0
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Appen Limited operates as an AI lifecycle company that provides data sourcing, data annotation, and model evaluation solutions in Australia, the United States, and internationally. It operates through the Appen Global and Appen China segments.

Full company description

Appen Limited operates as an AI lifecycle company that provides data sourcing, data annotation, and model evaluation solutions in Australia, the United States, and internationally. It operates through the Appen Global and Appen China segments. The company offers CrowdGen, the interface for its global crowd workforce; Mercury, the backend system used to design projects, manage the crowd workforce, and automate operational workflows; AI Data Platform (ADAP), which enables internal teams and external customers to design, manage, and execute human annotation and evaluation tasks; MatrixGo, the core platform supporting data collection and annotation services; Elite AI, the expert crowdsourcing platform enables expert recruitment, task publishing, and campaign referral expansion for user acquisition; MediGo, a medical LLM and image annotation; RoboGo, an embodied intelligence; and Appen Task, a mobile data collection application. The company serves technology, automotive, financial services, retail, government, and healthcare sectors. The company was formerly known as Appen Holdings Pty Limited and changed its name to Appen Limited in October 2014. Appen Limited was founded in 1996 and is headquartered in Chatswood, Australia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Appen Limited reported revenue of A$239M in FY2025 versus A$446M in FY2021, a compound −14.5%/yr. Reported net income was −A$22.6M in FY2025.

Growth Quality 21/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
A$239M
Latest YoY
+1.9%
Avg. growth/yr (3Y) 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.
−14.5%
Avg. growth/yr (5Y) 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.
−16.8%
Avg. growth/yr (16Y) 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.
+21.4%
Revenue −14.5%/yr
FY21 A$446M
FY22 A$383M
FY23 A$280M
FY24 A$234M
FY25 A$239M
Net income
FY21 A$20.7M
FY22 −A$236M
FY23 −A$80.4M
FY24 −A$12.4M
FY25 −A$22.6M

APX screens 59% overvalued. Compare with International Business Machines Corporation →

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Cite: Fair Value Calculator (2026). "Appen Limited Fair Value". https://www.fairvalue-calculator.com/stock/APX

Peer Group

Information Technology Services · 475 stocks

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.

Quality Score 43 · Bottom 25%
Fair Value upside −59% · Bottom 25%
Return on assets -7% · Bottom 25%
Net margin (TTM) -9% · Bottom 25%
Operating margin (TTM) -1% · Bottom 25%
Revenue growth 7% · Above median

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/B 1.76× · Cheaper than median
P/S (TTM) 0.72× · Cheaper than median
P/FCF 8.5× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 21
FUTURE 34 · sector 31
PAST 0 · sector 37
HEALTH 100 · sector 97
DIVIDEND 0 · sector 37

VALUE 0: the price sits above our fair-value range.

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Jul 20, 2026).

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.92 $143.90 -39%
Accenture plc ACNN 2,460 MXN 250.95 MXN -90%
Infosys Limited INFY ₹1,156 ₹1,457 +26%
HCL Technologies Limited HCLTECH ₹1,204 ₹1,230 +2%
Wipro Limited WIPRO ₹178.43 ₹226.81 +27%
Tech Mahindra Limited TECHM ₹1,455 ₹1,086 -25%
Samsung SDS Co 018260 199,300 KRW 196,390 KRW -1%
Persistent Systems Limited PERSISTENT ₹5,059 ₹2,364 -53%
Hyundai Autoever Corporation 307950 393,000 KRW 133,088 KRW -66%
Coforge Limited COFORGE ₹1,541 ₹702.84 -54%

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Frequently asked questions

Is Appen Limited (APX) overvalued or undervalued?
As of Jul 20, 2026, our model estimates a fair value of A$0.5780 versus a price of A$1.40, about −59% (overvalued).
What is the fair value of APX?
Our model-based fair value for Appen Limited is A$0.5780 (as of Jul 20, 2026), built from audited fundamentals. The current price is A$1.40.
What is the quality score of APX?
Appen Limited has a Quality Score of 43/100. 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 revenue of Appen Limited (APX)?
Appen Limited reported trailing-twelve-month revenue of about A$233M (latest available figure, as of Jul 20, 2026).
What is the net profit margin of APX?
The net profit margin of Appen Limited is about -9.4%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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