Redcentric (RCN) fair value: what the stock is really worth
As of Sep 24, 2026: fair value of Redcentric £0.61, price £0.95, upside -35.8%, quality 58 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 £0.9439 – £1.48 · fair‑value band £0.4600 – £0.7700 · the £0.9500 price screens above the £0.6100 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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Redcentric plc provides IT managed services for public sector and commercial markets in the United Kingdom.
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Redcentric plc provides IT managed services for public sector and commercial markets in the United Kingdom. It provides hosted IP telephony, unified communications, collaboration, SIP trunks, omnichannel contact centre, call management and reporting, and call recording; cloud consultancy, infrastructure as a service (Iaas), Microsoft Azure solutions, AWS consultancy, hybrid cloud, cloud immigration, Modern workplace 365, virtual desktops, and platform as a service (PaaS); and managed network services, such as connectivity, software-defined wide area network (WAN), local area network (LAN), managed WAN, secure remote access, and managed wireless networking solutions. The company also offers business continuity consultancy, data backup, and disaster recovery solutions. In addition, it provides network security, penetration testing services, application security, access management, security information and event management, endpoint management, distributed denial of service (DDoS) mitigation, vulnerability management, and security monitoring and analytics. Further, it offers IT consultancy, on-premises hardware and software, application modernization, implementation, supply chain management, and maintenance and support services. The company was founded in 1997 and is headquartered in Harrogate, the United Kingdom.
Stock analysis
Redcentric (RCN) currently trades at £0.9500, while our model-based Fair Value estimate is £0.6100, implying the stock looks roughly 55.7% overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of £1.00 per share, and 9 of the 26 models we run sit above the £0.9500 price.
Bear case: the Economic Profit group reads lowest at £0.1000, and 17 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: £0.4600 (bear) to £0.7700 (bull), the price of £0.9500 sits above 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 58/100 (solid quality), in the Technology sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Redcentric reported revenue of £135M in FY2025 versus £91.4M in FY2021, a compound +10.3%/yr. Reported net income was £3.5M in FY2025, compounding −21.1%/yr from FY2021.
Key figures
Market cap 199M GBX · P/E ratio 47.5 · P/S ratio 1.23 · EPS (TTM) £0.0200 · Dividend yield 2.9% · Net margin 2.6% · Return on equity 5.0% · Return on assets (EBIT) 4.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 48 out of 100 (low confidence).
What moves the price
The share trades about 34% below its 52-week high and at its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at 66% fair-value upside, at −36%, RCN screens richer than that median.
Fair Value models
Bear £0.4600Fair Value £0.6100Bull £0.7700
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 2025 figures (about 12 months old). Earnings retained since then (£0.0200 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.77/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
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.
+21.3%
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.
+11.8%
Revenue growth 14 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.
+13.5%
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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.
−10.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year−13.8%
Dividend (yield on the price)2.9%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−14% vs −2%, slowing
Profit margin 2020 to 2025 ⓘ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.−10% → 6%
Start year 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far.
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).
−3.4%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (UK: IMF forecast 2.3% a year to 2030, 3.3% from 2016 to 2025) that is about −5.6% a year for the price.
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.Information Technology Services · 497 stocks
Beats the industry median on 3/14 measures
Overall it trails its industry peers.
Valuation
Quality Score58 · Above median
Fair Value upside−36% · Below median
Profitability
Return on equity (TTM)5% · Below median
Return on assets3% · Below median
Net margin (TTM)2% · Below median
Operating margin (TTM)7% · Above median
Growth and dividend
Revenue growth−4% · Bottom 25%
Dividend yield (TTM)2.9% · Above median
Balance sheet
Debt / equity0.75× · Highest 25%
Valuation Multiplesvs Information Technology Services median · lower = cheaper
P/E (TTM)47.5× · Priciest 25%
P/B4.93× · Priciest 25%
P/S (TTM)1.99× · Pricier than median
P/FCF13.1× · Priciest 25%
EV/EBITDA15.1× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 45
FUTURE (revenue growth)0· sector 32
PAST (return on equity)20· sector 36
HEALTH (low debt)63· sector 97
DIVIDEND (yield)57· sector 43
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Redcentric Fair Value". https://www.fairvalue-calculator.com/stock/RCN
Frequently asked questions
Is Redcentric (RCN) overvalued or undervalued?
As of Sep 23, 2026, our model estimates a fair value of £0.6100 versus a price of £0.9500, about −36% upside (overvalued).
What is the fair value of RCN?
Our model-based fair value for Redcentric is £0.6100 (as of Sep 23, 2026), built from audited fundamentals. The current price: £0.9500.
What is the quality score of RCN?
Redcentric has a Quality Score of 58/100. 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 Redcentric (RCN)?
Our model-based price target is the fair value of £0.6100 (as of Sep 23, 2026) from 26 valuation models. Cautious scenario £0.4600, optimistic scenario £0.7700. It is a calculation from audited fundamentals, not an analyst target.
What is the Redcentric stock forecast for 2026?
Our models put fair value at £0.6100, about −36% upside versus a price of £0.9500 (overvalued). Cautious scenario £0.4600, optimistic scenario £0.7700. The calculation is refreshed regularly with new filings.
What is the revenue of Redcentric (RCN)?
Redcentric reported trailing-twelve-month revenue of about £133M (latest available figure, as of Sep 23, 2026).
Does Redcentric pay a dividend?
Redcentric currently shows a dividend yield of about 2.86% relative to its recent price (as of Sep 23, 2026).
What growth is priced into Redcentric (RCN)?
For today's price to be fair in a discounted-cash-flow model, Redcentric would have to grow free cash flow by -3.4 % per year for five years (discount rate 11.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +9.1 % per year. As of Sep 23, 2026.
What discount rate (WACC) does the fair value of RCN use?
Our models discount Redcentric at 11.8 %: a base by market capitalisation (micro), damped by beta 0.22, 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 Redcentric that is -3.4 % per year a year over ten years, using the same discount rate (11.8 %) and the same formula as our fair value.
How much growth has Redcentric (RCN) delivered so far?
Over the past 5 years revenue at Redcentric grew +9.1 % a year. The price currently implies -3.4 % 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 Redcentric (RCN) growing?
The median revenue growth in the sector is +8.2 % a year. That is the yardstick for the growth priced into Redcentric (-3.4 % 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 Redcentric (RCN)?
The free-cash-flow yield on the price is 16.74 %: that much free cash flow Redcentric produces per unit of market value. When it exceeds the discount rate of our models (11.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Redcentric (RCN)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Redcentric it is £0.6100 per share (as of Sep 23, 2026), against a price of £0.9500. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Redcentric stock overvalued or undervalued in 2026?
As of Sep 23, 2026, RCN trades above its calculated fair value: price £0.9500, fair value £0.6100, a gap of about −36% (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 RCN?
No. The price is what the market pays today (£0.9500); the fair value is what the company's own numbers justify (£0.6100). For Redcentric the two are £0.3400 per share apart. That gap is exactly why we show both numbers side by side.
How much is Redcentric worth?
The market values Redcentric at about 199M GBX (market capitalisation, as of Sep 23, 2026). Per share that is £0.9500; our models calculate a fair value of £0.6100 per share.
What do the bullish and bearish scenarios say about RCN?
Our models span a range for Redcentric: cautious scenario £0.4600, base £0.6100, optimistic £0.7700 per share (as of Sep 23, 2026, price £0.9500). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RCN?
Redcentric trades at a price-to-earnings ratio of 47.5 (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 £0.6100 is built from several models across several years. Other multiples: P/B 4.9, P/S 2.0, EV/EBITDA 15.1.
How solid is the balance sheet of Redcentric (RCN)?
Balance-sheet figures for Redcentric (as of Sep 23, 2026): return on equity 5.0%, debt of 0.75 per unit of equity. They feed the Quality Score of 58/100, which measures business quality independently of the share price.
How far is RCN from its 52-week high?
Redcentric trades at £0.9500, about 34% below its 52-week high of £1.43 and at the low of £0.9500 (as of Sep 24, 2026). Distance from the high says nothing about value: that is what the fair value of £0.6100 is for.
Which stocks are comparable to Redcentric?
From the same area (Technology) we also value International Business Machines Corporation, Accenture plc, Tata Consultancy Services Limited, Infosys Limited, 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 Redcentric stock attractive at the current price?
The data as of Sep 23, 2026: price £0.9500, calculated fair value £0.6100 (−36%), Quality Score 58/100, from 26 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 RCN calculated?
We run Redcentric through 26 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 £0.6100, 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 13.2 % above its aggregate fair value. Redcentric 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 Redcentric (RCN)?
The closing price on Sep 24, 2026 was £0.9500. Our model-based fair value is £0.6100, about −36% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Redcentric right now?
The price sits above even our optimistic bull case (£0.7700). The favourable scenario is already priced in. Solid but not exceptional quality (58/100) and above fair value, neither a clear bargain nor a standout compounder.
Key figures of Redcentric
How large is the market capitalisation of Redcentric (RCN)?
The market capitalisation of Redcentric is 199M 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 Redcentric (RCN)?
The price-to-sales ratio of Redcentric is 1.23 (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 Redcentric (RCN)?
Earnings per share at Redcentric are £0.0200 (price ÷ EPS = P/E 47.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Redcentric (RCN)?
The dividend yield of Redcentric is 2.9% (payout 136%). 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 Redcentric (RCN)?
The net margin of Redcentric is 2.6% (fiscal year 2025). 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 Redcentric (RCN)?
The return on equity (ROE) of Redcentric is 5.0% (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 Redcentric (RCN)?
On an EBIT basis the return on assets of Redcentric is 4.4% (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 Redcentric (RCN)?
The operating margin of Redcentric is 7.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Redcentric (RCN)?
Revenue at Redcentric is growing −3.6% versus a year earlier (3y avg +13.1%). 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 Redcentric (RCN)?
Earnings per share at Redcentric are growing −49.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Redcentric (RCN) carry?
The net debt of Redcentric is 42.4M GBX (fiscal year 2025, ≈ 2.1 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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