Bytes Technology Ltd (BYIT) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Bytes Technology Ltd £3.85, price £4.47, upside -13.9%, quality 67 out of 100. 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, dashed = 300-day average. As of Sep 23, 2026.
How to read this chart
60‑month range £2.49 – £5.88 · fair‑value band £2.91 – £5.03 · the £4.47 price screens above the £3.85 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 23, 2026.
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Bytes Technology Group plc offers software, security, AI, and cloud services in the United Kingdom, Europe, and internationally. It sells servers, laptops, and other devices; various cloud-based and non-cloud-based licenses; and subscriptions and software assurance products.
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Bytes Technology Group plc offers software, security, AI, and cloud services in the United Kingdom, Europe, and internationally. It sells servers, laptops, and other devices; various cloud-based and non-cloud-based licenses; and subscriptions and software assurance products. The company also offers externally and internally training and consulting services; cyber security; digital workspace; hybrid infrastructure; public cloud; and software asset management. The company was founded in 1982 and is headquartered in Leatherhead, the United Kingdom
Stock analysis
Bytes Technology Ltd (BYIT) currently trades at £4.47, while our model-based Fair Value estimate is £3.85, implying the stock looks roughly 16.1% overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of £4.62 per share, and 6 of the 24 models we run sit above the £4.47 price.
Bear case: the Economic Profit group reads lowest at £1.28, and 18 of the 24 models stay below the price. Evidence for this calculation is high.
Scenario range: £2.91 (bear) to £5.03 (bull), the price of £4.47 sits inside 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 67/100 (solid quality), in the Technology sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Bytes Technology Ltd reported revenue of £221M in FY2026 versus £146M in FY2022, a compound +10.9%/yr. Reported net income was £51.3M in FY2026, compounding +11.8%/yr from FY2022.
Key figures
Market cap 1.1B GBX · P/E ratio 21.3 · P/S ratio 4.95 · EPS (TTM) £0.2100 · Dividend yield 4.5% · Net margin 23.3% · Return on equity 57.3% · Return on assets (EBIT) 14.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (low confidence).
What moves the price
The share trades about 2% below its 52-week high and 79% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at −19% fair-value upside, at −14%, BYIT screens cheaper than that median.
Fair Value models
Bear £2.91Fair Value £3.85Bull £5.03
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 2026 figures (about 7 months old). Earnings retained since then (£0.0051 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.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+1.6%
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.
+6.1%
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.
−10.9%
Start year 2021 (pandemic)
Revenue growth 8 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.
−4.6%
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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.
+20.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+15.5%
Dividend (yield on the price)4.5%
Profit margin 2020 to 2026 ⓘ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.8% → 29%
⚠ Revenue per share shrinking 8.3%/yr over ~6Y (margins intact) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Growth Forecast
Price in line with expectations
The price assumes more growth than the company has delivered so far and about what analysts expect.
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).
+9.4%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+8.0%
Yearly sales growth analysts expect, extended to five years.
After inflation (UK: IMF forecast 2.3% a year to 2030, 3.3% from 2016 to 2025) that is about +7.0% a year for the price and +5.5% for the forecasts.
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.Software - Infrastructure · 378 stocks
Beats the industry median on 7/13 measures
A mixed picture versus its industry peers.
Valuation
Quality Score67 · Top 25%
Fair Value upside−14% · Below median
Profitability
Return on equity (TTM)57% · Top 25%
Return on assets8% · Top 25%
Net margin (TTM)23% · Top 25%
Operating margin (TTM)27% · Top 25%
Growth and dividend
Revenue growth1% · Below median
Dividend yield (TTM)4.5% · Top 25%
Valuation Multiplesvs Software - Infrastructure median · lower = cheaper
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Is Bytes Technology Ltd (BYIT) overvalued or undervalued?
As of Sep 23, 2026, our model estimates a fair value of £3.85 versus a price of £4.47, about −14% upside (overvalued).
What is the fair value of BYIT?
Our model-based fair value for Bytes Technology Ltd is £3.85 (as of Sep 23, 2026), built from audited fundamentals. The current price: £4.47.
What is the quality score of BYIT?
Bytes Technology Ltd has a Quality Score of 67/100. 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 Bytes Technology Ltd (BYIT)?
Our model-based price target is the fair value of £3.85 (as of Sep 23, 2026) from 24 valuation models. Cautious scenario £2.91, optimistic scenario £5.03. It is a calculation from audited fundamentals, not an analyst target.
What is the Bytes Technology Ltd stock forecast for 2026?
Our models put fair value at £3.85, about −14% upside versus a price of £4.47 (overvalued). Cautious scenario £2.91, optimistic scenario £5.03. The calculation is refreshed regularly with new filings.
What is the revenue of Bytes Technology Ltd (BYIT)?
Bytes Technology Ltd reported trailing-twelve-month revenue of about £221M (latest available figure, as of Sep 23, 2026).
Does Bytes Technology Ltd pay a dividend?
Bytes Technology Ltd currently shows a dividend yield of about 4.50% relative to its recent price (as of Sep 23, 2026).
What growth is priced into Bytes Technology Ltd (BYIT)?
For today's price to be fair in a discounted-cash-flow model, Bytes Technology Ltd would have to grow free cash flow by +9.4 % per year for five years (discount rate 10.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew -10.9 % per year. As of Sep 23, 2026.
What discount rate (WACC) does the fair value of BYIT use?
Our models discount Bytes Technology Ltd at 10.9 %: a base by market capitalisation (small), damped by beta 0.71, country premium for United Kingdom. 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 Bytes Technology Ltd that is +9.4 % per year a year over ten years, using the same discount rate (10.9 %) and the same formula as our fair value.
How much growth has Bytes Technology Ltd (BYIT) delivered so far?
Over the past 5 years revenue at Bytes Technology Ltd grew -10.9 % a year. The price currently implies +9.4 % 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 Bytes Technology Ltd (BYIT) growing?
The median revenue growth in the sector is +8.3 % a year. That is the yardstick for the growth priced into Bytes Technology Ltd (+9.4 % 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 Bytes Technology Ltd (BYIT)?
The free-cash-flow yield on the price is 5.36 %: that much free cash flow Bytes Technology Ltd produces per unit of market value. When it exceeds the discount rate of our models (10.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Bytes Technology Ltd (BYIT)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Bytes Technology Ltd it is £3.85 per share (as of Sep 23, 2026), against a price of £4.47. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Bytes Technology Ltd stock overvalued or undervalued in 2026?
As of Sep 23, 2026, BYIT trades above its calculated fair value: price £4.47, fair value £3.85, a gap of about −14% (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 BYIT?
No. The price is what the market pays today (£4.47); the fair value is what the company's own numbers justify (£3.85). For Bytes Technology Ltd the two are £0.6200 per share apart. That gap is exactly why we show both numbers side by side.
How much is Bytes Technology Ltd worth?
The market values Bytes Technology Ltd at about 1.1B GBX (market capitalisation, as of Sep 23, 2026). Per share that is £4.47; our models calculate a fair value of £3.85 per share.
What do the bullish and bearish scenarios say about BYIT?
Our models span a range for Bytes Technology Ltd: cautious scenario £2.91, base £3.85, optimistic £5.03 per share (as of Sep 23, 2026, price £4.47). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of BYIT?
Bytes Technology Ltd trades at a price-to-earnings ratio of 21.3 (as of Sep 23, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of £3.85 is built from several models across several years. Other multiples: P/B 18.0, P/S 6.6, EV/EBITDA 21.1.
How solid is the balance sheet of Bytes Technology Ltd (BYIT)?
Balance-sheet figures for Bytes Technology Ltd (as of Sep 23, 2026): return on equity 57.3%. They feed the Quality Score of 67/100, which measures business quality independently of the share price.
How far is BYIT from its 52-week high?
Bytes Technology Ltd trades at £4.47, about 2% below its 52-week high of £4.57 and 79% above the low of £2.49 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of £3.85 is for.
Which stocks are comparable to Bytes Technology Ltd?
From the same area (Technology) we also value Microsoft Corporation, Oracle Corporation, Palantir Technologies Inc, Palo Alto Networks, Inc, 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 Bytes Technology Ltd stock attractive at the current price?
The data as of Sep 23, 2026: price £4.47, calculated fair value £3.85 (−14%), Quality Score 67/100, 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 BYIT calculated?
We run Bytes Technology Ltd 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 £3.85, 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 14.1 % above its aggregate fair value. Bytes Technology 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 Bytes Technology Ltd (BYIT)?
The closing price on Sep 23, 2026 was £4.47. Our model-based fair value is £3.85, about −14% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Bytes Technology Ltd right now?
Solid but not exceptional quality (67/100) and above fair value, neither a clear bargain nor a standout compounder. The price sits in the upper half of our model range, so the margin of safety is thin. The data supports the verdict: every model runs on fully documented inputs.
Key figures of Bytes Technology Ltd
How large is the market capitalisation of Bytes Technology Ltd (BYIT)?
The market capitalisation of Bytes Technology Ltd is 1.1B GBX. 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 Bytes Technology Ltd (BYIT)?
The price-to-sales ratio of Bytes Technology Ltd is 4.95 (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 Bytes Technology Ltd (BYIT)?
Earnings per share at Bytes Technology Ltd are £0.2100 (price ÷ EPS = P/E 21.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Bytes Technology Ltd (BYIT)?
The dividend yield of Bytes Technology Ltd is 4.5% (payout 95.7%). 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 Bytes Technology Ltd (BYIT)?
The net margin of Bytes Technology Ltd is 23.3% (fiscal year 2026). 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 Bytes Technology Ltd (BYIT)?
The return on equity (ROE) of Bytes Technology Ltd is 57.3% (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 Bytes Technology Ltd (BYIT)?
On an EBIT basis the return on assets of Bytes Technology Ltd is 14.7% (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 Bytes Technology Ltd (BYIT)?
The operating margin of Bytes Technology Ltd is 26.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Bytes Technology Ltd (BYIT)?
Revenue at Bytes Technology Ltd is growing +0.7% versus a year earlier (3y avg +6.1%). 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 Bytes Technology Ltd (BYIT)?
Earnings per share at Bytes Technology Ltd are growing −6.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Bytes Technology Ltd (BYIT) hold?
Bytes Technology Ltd holds more cash than debt, 96.7M GBX net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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