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Arcontech Group (ARC) Fair Value & Analysis

Technology · GB · Market cap 11.0M GBX

AG Arcontech Group ARC · LSE
Price£0.8050
Fair Value£1.39
Upside+72.7%
Quality70/100
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Weak Growth
Highly profitable · 27.0% net margin
generates free cash flow
4.85% dividend yield
Ranks above peers (10/13)
Moderate moat 61/100
Evidence: High Range £1.06 – £1.61 Share as image

Fair value as of: Jul 14, 2026

From 26 valuation models · updated 27 days ago

Fair value updated Jul 14, 2026, revised from £1.41 to £1.39 (−1.4%) since Jun 24, 2026. Share price −3.6% over the past month.

A solid business, screening 73% undervalued on our models.

What matters now

  • The rarer combination: high quality (70/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (£1.06). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

£1.66 £0.5786 Fair Value £1.39 Jan 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 14, 2026.

How to read this chart

60‑month range £0.5786 – £1.66 · fair‑value band £1.06 – £1.61 · the £0.8050 price screens below the £1.39 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 14, 2026.

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Analysis

Arcontech Group (ARC) currently trades at £0.8050, while our model-based Fair Value estimate is £1.39, implying the stock looks roughly 72.7% undervalued today. The Quality Score stands at 70/100 (solid quality), in the Technology sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Arcontech Group generated revenue of £3.0M at a net margin of 27.0%. Revenue declined 4.8% year over year. It earns a return on equity of 9.7%. The balance sheet holds a net cash position of £7.0M. Fundamentals as of Jul 14, 2026

Our scenario range runs from £1.06 (bear case) to £1.61 (bull case); at £0.8050, the current price sits below 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. For context, the median of 10 Technology peers we cover trades at -27% fair-value upside, at 73%, ARC screens cheaper 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
Residual Income £0.5300 £0.5800 £0.6500 76
Growth DCF £0.9400 £1.09 £1.29 72
Gordon GGM £0.2600 £0.4400 £0.5700 70
All 26 models by family
DCF Models
FCF DCF £0.9400 £1.11 £1.33 38
Owner Earnings £1.23 £1.53 £1.93 31
5Y Revenue Exit £0.9400 £1.16 £1.46 39
5Y EBITDA Exit £1.05 £1.38 £1.77 41
5Y P/E Exit £1.25 £1.77 £2.33 38
10Y Revenue Exit £0.9200 £1.11 £1.37 36
10Y EBITDA Exit £0.9900 £1.24 £1.58 37
10Y P/E Exit £1.11 £1.48 £1.96 35
Earnings-Based
Graham-Dodd £0.4800 £1.71 £2.31 54
Lynch FV £0.4000 £0.5800 £0.7500 50
PEG = 1.0 £0.4000 £0.5800 £0.7500 46
EPV £0.9300 £0.9700 £1.01 59
Dividend Discount
Gordon GGM £0.2600 £0.4400 £0.5700 70
DDM Multi-Stage £0.2600 £0.4100 £0.4700 61
Multiples
P/E Multiple £1.06 £1.41 £1.76 63
P/S Multiple £0.4400 £0.5800 £0.7300 58
P/B Multiple £0.9000 £1.20 £1.50 55
EV/EBIT £1.34 £1.60 £1.86 53
EV/EBITDA £1.21 £1.42 £1.64 54
EV/Revenue £0.9600 £1.13 £1.31 43
Asset-Based
NCAV (Graham) £0.3300 £0.4400 £0.6500 50
Growth DCF
Growth DCF £0.9400 £1.09 £1.29 72
Rev-Margin DCF £0.9400 £1.16 £1.44 67
Economic Profit
Residual Income £0.5300 £0.5800 £0.6500 76
ROIC Compounder £0.9500 £1.01 £1.08 67
Growth Earnings
Growth-Adj P/E £0.7500 £1.07 £1.39 68

Widest divergence: DCF Models (£1.24) versus Dividend Discount (£0.4100). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 3.0M GBX
Revenue growth (YoY) -4.8%
Net margin 27.0%
Return on equity 9.7%
Free cash flow 597K GBX FY2025
P/E ratio 13.8
More key figures
Operating margin 20.7%
EPS (TTM) £0.0600
Dividend yield 4.9%
EPS growth (YoY) -23.6%
Net cash 7.0M GBX FY2025

Figures from reported company fundamentals · as of Jul 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 70/100

Of which business quality 69 · Market factors (momentum, volatility) 51

Profitability 54
Margins and returns on capital today
Quality Growth 36
Are margins and returns improving?
Cashflow 65
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 75
Disciplined investing over empire-building
Low Volatility 89
Calm price path (market factor)
Momentum 42
Price trend over the last 3–12 months (market factor)
52W Momentum 24
Distance to the 52-week high (market factor)
Net Issuance 80
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

Arcontech Group plc, together with its subsidiaries, engages in the development and sale of proprietary software in the United Kingdom, rest of Europe, Africa, North America, Australasia, and the Asia Pacific.

Full company description

Arcontech Group plc, together with its subsidiaries, engages in the development and sale of proprietary software in the United Kingdom, rest of Europe, Africa, North America, Australasia, and the Asia Pacific. The company's products include Excelerator Desktop that provides a graphical user interface, which integrates various internal and external real-time data sources into a single-screen format; CityVision, a market data platform for real-time data reception, transformation, and publishing; and CityVision Multi-Vendor Contribution System that provides the ability to contribute data to various destinations. It also provides Excelerator, a Microsoft excel add-in for real-time reception and publishing of market data; CityVision Cache, a real-time data repository; CityVision Symbol Mapper, a real-time data conversion system, which allows market data managers to separate data integration from the data source; and CityVision API that facilitates the development of real-time market data applications. In addition, the company involved in the provision of computer consultancy services. The company was formerly known as Knowledge Technology Solutions PLC and changed its name to Arcontech Group plc in February 2009. Arcontech Group plc was founded in 1979 and is based in London, the United Kingdom.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Arcontech Group reported revenue of £3.1M in FY2025 versus £3.0M in FY2021, a compound +1.0%/yr. Reported net income was £943K in FY2025, compounding −2.6%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
£3.1M
Latest YoY
+6.8%
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.
+4.1%
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.
+1.0%
Avg. growth/yr (24Y) 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.
+13.4%
Revenue +1.0%/yr
FY21 £3.0M
FY22 £2.8M
FY23 £2.7M
FY24 £2.9M
FY25 £3.1M
Net income −2.6%/yr
FY21 £1.0M
FY22 £611K
FY23 £980K
FY24 £1.1M
FY25 £943K

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Cite: Fair Value Calculator (2026). "Arcontech Group Fair Value". https://www.fairvalue-calculator.com/stock/ARC

Peer Group

Software - Application · 709 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 70 · Top 25%
Fair Value upside +73% · Top 25%
Return on equity (TTM) 10% · Above median
Return on assets 4% · Above median
Net margin (TTM) 27% · Top 25%
Operating margin (TTM) 21% · Top 25%
Revenue growth -5% · Below median
Dividend yield (TTM) 4.9% · Top 25%

Valuation Multiples vs Software - Application median · lower = cheaper

P/E (TTM) 13.8× · Cheaper than 75% of peers
P/B 1.71× · Cheaper than median
P/S (TTM) 4.91× · Pricier than 75% of peers
P/FCF 24.9× · Pricier than 75% of peers
EV/EBITDA 12.0× · Cheaper 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 100 · sector 0
FUTURE 0 · sector 38
PAST 39 · sector 13
HEALTH 0 · sector 98
DIVIDEND 97 · sector 28

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 Software - Application stocks, each showing price versus our Fair Value estimate (as of Jul 14, 2026).

Stock Price Fair Value vs Fair Value
SAP SE SAPS C$12.69 C$16.26 +28%
Shopify Inc SHOP C$173.23 C$20.54 -88%
Uber Technologies, Inc UBER $72.67 $51.11 -30%
Salesforce, Inc CRM $170.77 $182.10 +7%
ServiceNow, Inc NOW $107.71 $33.12 -69%
Cadence Design Systems, Inc CDNS $384.17 $80.41 -79%
Snowflake Inc SNOW $271.87 $34.04 -87%
Adobe Inc ADBE $230.61 $379.48 +65%
Automatic Data Processing, Inc ADP $241.92 $177.51 -27%
Intuit Inc INTU $291.09 $258.69 -11%

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Frequently asked questions

Is Arcontech Group (ARC) overvalued or undervalued?
As of Jul 14, 2026, our model estimates a fair value of £1.39 versus a price of £0.8050, about +73% (undervalued).
What is the fair value of ARC?
Our model-based fair value for Arcontech Group is £1.39 (as of Jul 14, 2026), built from audited fundamentals. The current price is £0.8050.
What is the quality score of ARC?
Arcontech Group has a Quality Score of 70/100. 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 Arcontech Group (ARC)?
Arcontech Group reported trailing-twelve-month revenue of about £3.0M (latest available figure, as of Jul 14, 2026).
What is the net profit margin of ARC?
The net profit margin of Arcontech Group is about 27.0%, meaning it keeps roughly 27.0% of revenue as net income. Based on the latest reported figures.
Does Arcontech Group pay a dividend?
Arcontech Group currently shows a dividend yield of about 5.30% relative to its recent price (as of Jul 14, 2026).

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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