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Neonode Inc (NEON) Fair Value & Analysis

Technology · US · Market cap $18.8M

NI Neonode Inc logo Neonode Inc NEON · US
Price$0.8835
Fair Value$1.10
Upside+24.1%
Quality44/100
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Weak Growth
Low debt · negative free cash flow
Ranks above peers (7/10)
Moderate moat 58/100
Evidence: Medium Range $0.8220 – $1.37 Share as image

Fair value as of: Aug 13, 2026

From 12 valuation models · updated today

Fair value updated Aug 13, 2026, revised from $4.41 to $1.10 (−75.1%) since Jul 19, 2026. Share price +6.3% over the past month.

Below-average quality, screening 24% undervalued on our models.

What matters now

  • Our model range runs from $0.8220 (bear) to $1.37 (bull), base $1.10. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 44/100 (below-average quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

$29.30 $0.7517 Fair Value $1.10 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range $0.7517 – $29.30 · fair‑value band $0.8220 – $1.37 · the $0.8835 price screens below the $1.10 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Neonode Inc (NEON) currently trades at $0.8835, while our model-based Fair Value estimate is $1.10, implying the stock looks roughly 24.1% undervalued today. The Quality Score stands at 44/100 (below-average 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.

Trailing-twelve-month revenue stands at $2.2M. Revenue grew 19.7% year over year. It earns a return on equity of 42.6%. The balance sheet holds a net cash position of $25.0M. Fundamentals as of Aug 13, 2026

Our scenario range runs from $0.8220 (bear case) to $1.37 (bull case); at $0.8835, the current price sits within 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 -67% fair-value upside, at 24%, NEON 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 $2.52 $3.28 $13.09 76
Gordon GGM $1.87 $3.13 $4.07 70
Growth-Adj P/E $8.75 $12.51 $16.26 68
All 12 models by family
DCF Models
Owner Earnings $5.81 $7.65 $10.00 31
Earnings-Based
Graham-Dodd $3.44 $11.52 $15.43 54
Lynch FV $2.62 $3.74 $4.86 50
PEG = 1.0 $2.62 $3.74 $4.86 46
Dividend Discount
Gordon GGM $1.87 $3.13 $4.07 70
DDM Multi-Stage $1.87 $2.90 $3.37 61
Multiples
P/E Multiple $10.63 $14.17 $17.71 63
P/S Multiple $0.5100 $0.6800 $0.8400 58
P/B Multiple $6.45 $8.60 $10.75 55
Asset-Based
NCAV (Graham) $0.7400 $0.9900 $1.47 50
Economic Profit
Residual Income $2.52 $3.28 $13.09 76
Growth Earnings
Growth-Adj P/E $8.75 $12.51 $16.26 68

Widest divergence: Growth Earnings ($12.51) versus Asset-Based ($0.9900). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) $2.2M
Revenue growth (YoY) +19.7%
Net margin 387%
Return on equity 42.6%
Free cash flow −$10.3M FY2025
P/E ratio 1.8
More key figures
Operating margin -337%
EPS (TTM) $0.4800
Net cash $25.0M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 44/100

Of which business quality 43 · Market factors (momentum, volatility) 9

Profitability 62
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 73
Balance sheet, leverage, solvency risk
Investment 68
Disciplined investing over empire-building
Low Volatility 32
Calm price path (market factor)
Momentum 0
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 15
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

Neonode Inc., together with its subsidiaries, provides software solutions for machine perception to detect and track persons and objects in video streams from cameras and other types of imagers in the United States, Japan, South Korea, Germany, Sweden, China, and internationally.

Full company description

Neonode Inc., together with its subsidiaries, provides software solutions for machine perception to detect and track persons and objects in video streams from cameras and other types of imagers in the United States, Japan, South Korea, Germany, Sweden, China, and internationally. It also offers optical sensing solutions for contactless touch, touch, and gesture sensing. In addition, the company licenses its zForce technology to original equipment manufacturers and automotive Tier 1 suppliers, as well as provides non-recurring engineering services related to application development. Further, it provides machine perception solutions. The company serves office equipment, automotive, industrial automation, medical, military, and avionics markets. Neonode Inc. was founded in 1997 and is headquartered in Stockholm, Sweden.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Neonode Inc reported revenue of $2.1M in FY2025 versus $5.8M in FY2021, a compound −22.9%/yr. Reported net income was $8.5M in FY2025.

Growth Quality 16/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
$2.1M
Latest YoY
−33.7%
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.
−28.6%
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.
−19.2%
Avg. growth/yr (40Y) 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.
−2.6%
Revenue −22.9%/yr
FY21 $5.8M
FY22 $5.7M
FY23 $3.8M
FY24 $3.1M
FY25 $2.1M
Net income
FY21 −$6.5M
FY22 −$4.9M
FY23 −$10.1M
FY24 −$6.5M
FY25 $8.5M

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Cite: Fair Value Calculator (2026). "Neonode Inc Fair Value". https://www.fairvalue-calculator.com/stock/NEON

Peer Group

Electronic Components · 647 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 44 · Below median
Fair Value upside +11% · Top 25%
Return on equity (TTM) 43% · Top 25%
Return on assets -36% · Bottom 25%
Revenue growth 20% · Above median
Debt / equity 0.07× · Lower than median

Valuation Multiples vs Electronic Components median · lower = cheaper

P/E (TTM) 1.8× · Cheaper than 75% of peers
P/B 0.76× · Cheaper than 75% of peers
P/S (TTM) 8.69× · Pricier than 75% of peers
PEG 0.37× · 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 66 · sector 0
FUTURE 99 · sector 36
PAST 100 · sector 24
HEALTH 97 · sector 95
DIVIDEND 0 · sector 24

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 Electronic Components stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Delta Electronics, Inc 2308 1,790 TWD 602.37 TWD -66%
Luxshare Precision Industry Co 002475 ¥56.06 ¥38.44 -31%
Samsung Electro-Mechanics Co 009150 1,503,000 KRW 172,954 KRW -88%
Suzhou Dongshan Precision Manufacturing Co 002384 ¥202.11 ¥21.19 -90%
Shengyi Technology Co 600183 ¥143.23 ¥36.30 -75%
Shennan Circuits Co 002916 ¥385.80 ¥125.52 -67%
Victory Giant Technology (HuiZhou) Co 2476 HK$238.60 HK$75.68 -68%
Kingboard Laminates Holdings 1888 HK$38.70 HK$8.95 -77%
Asia Vital Components Co 3017 2,910 TWD 1,369 TWD -53%
Nan Ya Printed Circuit Board Corporation 8046 1,215 TWD 1,768 TWD +46%

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Frequently asked questions

Is Neonode Inc (NEON) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of $1.10 versus a price of $0.8835, about +24% (undervalued).
What is the fair value of NEON?
Our model-based fair value for Neonode Inc is $1.10 (as of Aug 13, 2026), built from audited fundamentals. The current price is $0.8835.
What is the quality score of NEON?
Neonode Inc has a Quality Score of 44/100. 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 Neonode Inc (NEON)?
Neonode Inc reported trailing-twelve-month revenue of about $2.2M (latest available figure, as of Aug 13, 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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