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E & M Computing Ltd (EMCO) Fair Value & Analysis

Technology · Il · Market cap 363M ILA

EM E & M Computing Ltd EMCO · TA
Price5.40 ILA
Fair Value8.87 ILA
Upside+64.3%
Quality56/100
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Weak Growth
Thin margins · 1.3% net margin
Low debt · generates free cash flow
Ranks above peers (9/14)
Narrow moat 41/100
Evidence: Medium Range 6.65 ILA – 11.09 ILA Share as image

Fair value as of: Jul 20, 2026

From 26 valuation models · updated 21 days ago

Share price +0.4% over the past month.

A solid business, screening 64% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (6.65 ILA). The market is more pessimistic than our downside scenario.
  • Solid quality (56/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

12.71 ILA 5.15 ILA Fair Value 8.87 ILA Mar 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 5.15 ILA – 12.71 ILA · fair‑value band 6.65 ILA – 11.09 ILA · the 5.40 ILA price screens below the 8.87 ILA fair value. Dashed = 300-day average. As of Jul 20, 2026.

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Analysis

E & M Computing Ltd (EMCO) currently trades at 5.40 ILA, while our model-based Fair Value estimate is 8.87 ILA, implying the stock looks roughly 64.3% undervalued today. The Quality Score stands at 56/100 (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: medium), always confirm before acting.

Over the trailing twelve months, E & M Computing Ltd generated revenue of 1.5B ILA at a net margin of 1.3%. Revenue grew 2.4% year over year. It earns a return on equity of 13.5%. Net debt stands at 188M ILA. Fundamentals as of Jul 20, 2026

Our scenario range runs from 6.65 ILA (bear case) to 11.09 ILA (bull case); at 5.40 ILA, 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 -25% fair-value upside, at 64%, EMCO 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
Growth DCF 7.53 ILA 11.24 ILA 16.27 ILA 80
Residual Income 3.29 ILA 3.67 ILA 5.23 ILA 76
Rev-Margin DCF 10.53 ILA 17.97 ILA 26.98 ILA 74
All 26 models by family
DCF Models
FCF DCF 7.56 ILA 11.58 ILA 17.29 ILA 38
Owner Earnings 10.27 ILA 15.76 ILA 23.56 ILA 31
5Y Revenue Exit 10.53 ILA 18.13 ILA 28.18 ILA 39
5Y EBITDA Exit 14.38 ILA 25.65 ILA 39.34 ILA 41
5Y P/E Exit 6.66 ILA 10.56 ILA 14.77 ILA 38
10Y Revenue Exit 8.88 ILA 15.20 ILA 24.32 ILA 36
10Y EBITDA Exit 11.51 ILA 20.08 ILA 32.42 ILA 37
10Y P/E Exit 6.93 ILA 10.28 ILA 14.59 ILA 35
Earnings-Based
Graham-Dodd 3.02 ILA 11.47 ILA 15.53 ILA 54
Lynch FV 2.79 ILA 3.98 ILA 5.17 ILA 50
PEG = 1.0 2.79 ILA 3.98 ILA 5.17 ILA 46
EPV 9.66 ILA 10.96 ILA 12.05 ILA 59
Dividend Discount
Gordon GGM 1.83 ILA 3.29 ILA 4.53 ILA 70
DDM Multi-Stage 1.83 ILA 3.01 ILA 3.51 ILA 61
Multiples
P/E Multiple 6.65 ILA 8.87 ILA 11.09 ILA 63
P/S Multiple 5.66 ILA 7.54 ILA 9.43 ILA 58
P/B Multiple 5.66 ILA 7.54 ILA 9.43 ILA 55
EV/EBIT 19.10 ILA 25.43 ILA 31.75 ILA 53
EV/EBITDA 20.84 ILA 27.74 ILA 34.65 ILA 54
EV/Revenue 12.92 ILA 18.40 ILA 23.88 ILA 43
Asset-Based
NCAV (Graham) 1.90 ILA 2.54 ILA 3.79 ILA 50
Growth DCF
Growth DCF 7.53 ILA 11.24 ILA 16.27 ILA 80
Rev-Margin DCF 10.53 ILA 17.97 ILA 26.98 ILA 74
Economic Profit
Residual Income 3.29 ILA 3.67 ILA 5.23 ILA 76
ROIC Compounder 10.41 ILA 12.73 ILA 15.30 ILA 72
Growth Earnings
Growth-Adj P/E 4.94 ILA 7.05 ILA 9.17 ILA 68

Widest divergence: DCF Models (15.20 ILA) versus Asset-Based (2.54 ILA). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 1.5B ILA
Revenue growth (YoY) +2.4%
Net margin 1.3%
Return on equity 13.5%
Free cash flow 33.2M ILA FY2025
P/E ratio 16.4
More key figures
Operating margin 5.9%
EPS (TTM) 0.5000 ILA
Dividend yield 0.0%
EPS growth (YoY) -20.6%
Net debt 188M ILA FY2025

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

Quality Score breakdown

Overall quality 56/100

Of which business quality 54 · Market factors (momentum, volatility) 26

Profitability 47
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 57
Earnings quality: real cash, not paper profit
Fin. Strength 33
Balance sheet, leverage, solvency risk
Investment 83
Disciplined investing over empire-building
Low Volatility 78
Calm price path (market factor)
Momentum 3
Price trend over the last 3–12 months (market factor)
52W Momentum 4
Distance to the 52-week high (market factor)
Net Issuance 81
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

E & M Computing Ltd. provides technological solutions in Israel. The company serves its solutions to defense, infrastructure government, cyber, software, data and finance industries. E & M Computing Ltd. was incorporated in 1984 and is headquartered in Petah Tikva, Israel.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

E & M Computing Ltd reported revenue of 1.5B ILA in FY2025 versus 1.6B ILA in FY2021, a compound −0.9%/yr. Reported net income was 19.7M ILA in FY2025, compounding −14.9%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
1.5B ILS
Latest YoY
+3.0%
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.
+6.7%
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.
+1.3%
Avg. growth/yr (22Y) 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.
+10.9%
Revenue −0.9%/yr
FY21 1.6B ILA
FY22 1.2B ILA
FY23 1.4B ILA
FY24 1.5B ILA
FY25 1.5B ILA
Net income −14.9%/yr
FY21 37.4M ILA
FY22 24.9M ILA
FY23 22.3M ILA
FY24 25.5M ILA
FY25 19.7M ILA
Character of growth · EPS growth decomposed (2014-2025) −7.2 % p.a.
Revenue per share +6.0 pp

of which total revenue +6.0 pp · buybacks/dilution +0.0 pp

EBIT margin −5.5 pp
Tax rate −1.3 pp
Residual (interest, one-offs) −6.4 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "E & M Computing Ltd Fair Value". https://www.fairvalue-calculator.com/stock/EMCO

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 56 · Above median
Fair Value upside +64% · Top 25%
Return on equity (TTM) 14% · Above median
Return on assets 4% · Above median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 6% · Above median
Revenue growth 2% · Below median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.38× · Higher than 75% of peers

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/E (TTM) 16.4× · Cheaper than median
P/B 0.71× · Cheaper than median
P/S (TTM) 0.08× · Cheaper than 75% of peers
P/FCF 3.6× · Pricier than median
EV/EBITDA 1.4× · Cheaper than 75% of peers

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 21
FUTURE 12 · sector 31
PAST 54 · sector 37
HEALTH 81 · sector 97
DIVIDEND 1 · sector 37

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 E & M Computing Ltd (EMCO) overvalued or undervalued?
As of Jul 20, 2026, our model estimates a fair value of 8.87 ILA versus a price of 5.40 ILA, about +64% (undervalued).
What is the fair value of EMCO?
Our model-based fair value for E & M Computing Ltd is 8.87 ILA (as of Jul 20, 2026), built from audited fundamentals. The current price is 5.40 ILA.
What is the quality score of EMCO?
E & M Computing Ltd has a Quality Score of 56/100. 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 E & M Computing Ltd (EMCO)?
E & M Computing Ltd reported trailing-twelve-month revenue of about 1.5B ILS (latest available figure, as of Jul 20, 2026).
What is the net profit margin of EMCO?
The net profit margin of E & M Computing Ltd is about 1.3%, meaning it keeps roughly 1.3% of revenue as net income. Based on the latest reported figures.
Does E & M Computing Ltd pay a dividend?
E & M Computing Ltd currently shows a dividend yield of about 0.03% relative to its recent price (as of Jul 20, 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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