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Etherstack plc (ESK) Fair Value & Analysis

Technology · AU · Market cap A$75.0M

EP Etherstack plc ESK · AU
PriceA$0.5400
Fair ValueA$0.2700
Upside-50.0%
Quality65/100
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Mixed Growth
Loss-making · -6.9% net margin
Low debt · generates free cash flow
Trails peers (2/11)
Narrow moat 14/100
Evidence: Medium Range A$0.2000 – A$0.3400 Share as image

Fair value as of: Jul 19, 2026

From 13 valuation models · updated 22 days ago

Share price +1.9% over the past month.

A solid business, but screening 50% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (A$0.3400). The favourable scenario is already priced in.
  • Solid but not exceptional quality (65/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

A$0.7600 A$0.1100 Fair Value A$0.2700 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range A$0.1100 – A$0.7600 · fair‑value band A$0.2000 – A$0.3400 · the A$0.5400 price screens above the A$0.2700 fair value. Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

Etherstack plc (ESK) currently trades at A$0.5400, while our model-based Fair Value estimate is A$0.2700, implying the stock looks roughly 50.0% overvalued today. The Quality Score stands at 65/100 (solid 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, Etherstack plc generated revenue of A$10.1M at a net margin of -6.9%. Revenue grew 50.0% year over year. It earns a return on equity of -9.1%. Net debt stands at A$1.8M. Fundamentals as of Jul 19, 2026

Our scenario range runs from A$0.2000 (bear case) to A$0.3400 (bull case); at A$0.5400, 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 34% below its 52-week high and 52% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -27% fair-value upside, at -50%, ESK 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$0.1800 A$0.2500 A$0.3600 80
Rev-Margin DCF A$0.1700 A$0.2800 A$0.4200 74
Gordon GGM A$0.0100 A$0.0100 A$0.0100 70
All 13 models by family
DCF Models
FCF DCF A$0.1800 A$0.2700 A$0.3900 38
Owner Earnings A$0.0500 A$0.0800 A$0.1100 31
5Y Revenue Exit A$0.1700 A$0.2800 A$0.4300 39
5Y EBITDA Exit A$0.1900 A$0.3100 A$0.4600 41
10Y Revenue Exit A$0.1700 A$0.2600 A$0.3900 36
10Y EBITDA Exit A$0.1800 A$0.2800 A$0.4200 37
Dividend Discount
Gordon GGM A$0.0100 A$0.0100 A$0.0100 70
DDM Multi-Stage A$0.0100 A$0.0100 A$0.0100 61
Multiples
EV/EBITDA A$0.2200 A$0.2900 A$0.3600 54
EV/Revenue A$0.1800 A$0.2500 A$0.3300 43
Asset-Based
NCAV (Graham) A$0.0500 A$0.0600 A$0.1000 50
Growth DCF
Growth DCF A$0.1800 A$0.2500 A$0.3600 80
Rev-Margin DCF A$0.1700 A$0.2800 A$0.4200 74

Widest divergence: DCF Models (A$0.2700) versus Dividend Discount (A$0.0100). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) A$10.1M
Revenue growth (YoY) +50.0%
Net margin -6.9%
Return on equity -9.1%
Free cash flow A$2.7M FY2025
Operating margin -42.9%
More key figures
EPS (TTM) A$-0.0100
EPS growth (YoY) +247%
Net debt A$1.8M FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 65/100

Of which business quality 68 · Market factors (momentum, volatility) 44

Profitability 20
Margins and returns on capital today
Quality Growth 100
Are margins and returns improving?
Cashflow 70
Earnings quality: real cash, not paper profit
Fin. Strength 80
Balance sheet, leverage, solvency risk
Investment 68
Disciplined investing over empire-building
Low Volatility 42
Calm price path (market factor)
Momentum 42
Price trend over the last 3–12 months (market factor)
52W Momentum 49
Distance to the 52-week high (market factor)
Net Issuance 84
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

Etherstack plc, a wireless technology company, engages in the development, manufacture, licensing, and sale of mission critical radio technologies to equipment manufacturers and network operators in the United Kingdom, the United States, Europe, Japan, and Australia.

Full company description

Etherstack plc, a wireless technology company, engages in the development, manufacture, licensing, and sale of mission critical radio technologies to equipment manufacturers and network operators in the United Kingdom, the United States, Europe, Japan, and Australia. The company's technology enables push-to-talk communications; and advanced digital land mobile radio (LMR) and cellular and satellite networks. It offers a range of cryptographic solutions, including P25 security suite, which unites AES/DES P25 encryption engine with P25 key fill device support for complete P25 subscriber encryption; P25 key management facility; P25 security dongles; and FIPS 140-2 cryptographic module, a single-board security device that implements APCO P25 encryption, decryption, and key management and storage services in conformance with FIPS140-2 standards. It also designs, develops, supplies, and licenses wireless air interface protocol stacks for third-party defence and critical communications radio manufacturers. In addition, the company offers LTE interworking function for LMR; LMR protocol stacks; and LMR voice and data systems. Further, it provides tactical and satellite solutions, such as P25 tactical repeater, which is a compact, battery-powered, and rapidly deployable analog for stand-alone or network augmentation use; and IVX, a small form factor push-to-talk over IP radio for encrypted voice and data communications. The company serves carrier, defense, public safety, utilities, and resource sectors. The company was formerly known as MM&S (5698) plc and changed its name to Etherstack plc in May 2012. Etherstack plc was founded in 2002 and is based in Chippendale, Australia.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Etherstack plc reported revenue of A$15.6M in FY2025 versus A$8.5M in FY2021, a compound +16.5%/yr. Reported net income was −A$1.1M in FY2025.

Growth Quality 59/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
A$15.6M
Latest YoY
+74.0%
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.
+3.2%
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.
+27.2%
Avg. growth/yr (17Y) 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.
+4.4%
Revenue +16.5%/yr
FY21 A$8.5M
FY22 A$14.2M
FY23 A$13.8M
FY24 A$9.0M
FY25 A$15.6M
Net income
FY21 A$1.5M
FY22 A$3.2M
FY23 A$786K
FY24 −A$5.9M
FY25 −A$1.1M

ESK screens 50% overvalued. Compare with SAP SE →

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Cite: Fair Value Calculator (2026). "Etherstack plc Fair Value". https://www.fairvalue-calculator.com/stock/ESK

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 65 · Above median
Fair Value upside −50% · Below median
Return on assets -1% · Below median
Net margin (TTM) -7% · Bottom 25%
Operating margin (TTM) -43% · Bottom 25%
Revenue growth 50% · Top 25%
Debt / equity 0.18× · Higher than median

Valuation Multiples vs Software - Application median · lower = cheaper

P/B 3.88× · Pricier than median
P/S (TTM) 5.25× · Pricier than 75% of peers
P/FCF 19.7× · Pricier 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 0 · sector 0
FUTURE 100 · sector 38
PAST 0 · sector 13
HEALTH 91 · sector 98
DIVIDEND 0 · sector 28

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

Insider activity: 40/100

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 19, 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 Etherstack plc (ESK) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of A$0.2700 versus a price of A$0.5400, about −50% (overvalued).
What is the fair value of ESK?
Our model-based fair value for Etherstack plc is A$0.2700 (as of Jul 19, 2026), built from audited fundamentals. The current price is A$0.5400.
What is the quality score of ESK?
Etherstack plc has a Quality Score of 65/100. 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 Etherstack plc (ESK)?
Etherstack plc reported trailing-twelve-month revenue of about A$10.1M (latest available figure, as of Jul 19, 2026).
What is the net profit margin of ESK?
The net profit margin of Etherstack plc is about -6.9%, 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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