EN DE

ReadyTech Holdings (RDY) Fair Value & Analysis

Technology · AU · Market cap A$199M

RH ReadyTech Holdings RDY · AU
PriceA$1.69
Fair ValueA$0.8900
Upside-47.2%
Quality33/100
Watch ReadyTech Holdings for free, get notified when fair value or trend changes. Watch for free
Mixed Growth
Thin margins · 1.0% net margin
Low debt · generates free cash flow
Trails peers (3/13)
Narrow moat 27/100
Evidence: High Range A$0.3100 – A$1.20 Share as image

Fair value as of: Jul 18, 2026

From 15 valuation models · updated 22 days ago

Fair value updated Jul 18, 2026, revised from A$0.9600 to A$0.8900 (−7.3%) since Jun 24, 2026. Share price +5.3% over the past month.

Below-average quality, and screening another 47% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (A$1.20). The favourable scenario is already priced in.
  • Weak quality (33/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The model range is unusually wide (A$0.3100 to A$1.20). The outcome hinges heavily on assumptions, so read the point estimate with caution.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

A$4.20 A$1.13 Fair Value A$0.8900 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range A$1.13 – A$4.20 · fair‑value band A$0.3100 – A$1.20 · the A$1.69 price screens above the A$0.8900 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

ReadyTech Holdings (RDY) currently trades at A$1.69, while our model-based Fair Value estimate is A$0.8900, implying the stock looks roughly 47.2% overvalued today. The Quality Score stands at 33/100 (below-average 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: high).

Over the trailing twelve months, ReadyTech Holdings generated revenue of A$125M at a net margin of 1.0%. Revenue grew 5.6% year over year. It earns a return on equity of 0.9%. Net debt stands at A$40.8M. Fundamentals as of Jul 18, 2026

Our scenario range runs from A$0.3100 (bear case) to A$1.20 (bull case); at A$1.69, 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 40% below its 52-week high and 53% 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 -47%, RDY 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 BearBaseBull Evidence
Highest evidence
Growth DCF A$0.0700 A$0.2700 A$0.6400 80
Rev-Margin DCF A$0.3100 A$0.8800 A$2.01 74
ROIC Compounder A$0.1100 A$0.1600 A$0.2000 72
All 15 models by family
DCF Models
FCF DCF A$0.0900 A$0.2500 A$0.7000 38
5Y Revenue Exit A$0.2700 A$0.7300 A$1.69 39
5Y EBITDA Exit A$1.52 A$3.26 A$6.67 41
10Y Revenue Exit A$0.1800 A$0.8200 A$1.26 36
10Y EBITDA Exit A$0.9800 A$3.12 A$7.03 37
Earnings-Based
EPV A$0.1100 A$0.1600 A$0.2000 59
Dividend Discount
Gordon GGM A$0.1700 A$0.2800 A$0.3600 70
DDM Multi-Stage A$0.1700 A$0.2700 A$0.3000 61
Multiples
EV/EBIT A$0.6200 A$0.9300 A$1.23 53
EV/EBITDA A$2.31 A$3.17 A$4.04 54
EV/Revenue A$0.3200 A$0.5900 A$0.8500 43
Asset-Based
NCAV (Graham) A$0.5700 A$0.7700 A$1.15 50
Growth DCF
Growth DCF A$0.0700 A$0.2700 A$0.6400 80
Rev-Margin DCF A$0.3100 A$0.8800 A$2.01 74
Economic Profit
ROIC Compounder A$0.1100 A$0.1600 A$0.2000 72

Widest divergence: Multiples (A$0.9300) versus Earnings-Based (A$0.1600). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) A$125M
Revenue growth (YoY) +5.6%
Net margin 1.0%
Return on equity 0.9%
Free cash flow A$4.0M FY2025
P/E ratio 161.0
More key figures
Operating margin -0.5%
EPS (TTM) A$0.0100
EPS growth (YoY) -25.7%
Net debt A$40.8M FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 33/100

Of which business quality 37 · Market factors (momentum, volatility) 33

Profitability 22
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 33
Earnings quality: real cash, not paper profit
Fin. Strength 48
Balance sheet, leverage, solvency risk
Investment 34
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 28
Price trend over the last 3–12 months (market factor)
52W Momentum 21
Distance to the 52-week high (market factor)
Net Issuance 43
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

ReadyTech Holdings Limited provides technology-based solutions in Australia and New Zealand, the United Kingdom, and the United States of America. It operates in three segments: Education and Work Pathways; Workforce Solutions; and Government Justice and Procurement.

Full company description

ReadyTech Holdings Limited provides technology-based solutions in Australia and New Zealand, the United Kingdom, and the United States of America. It operates in three segments: Education and Work Pathways; Workforce Solutions; and Government Justice and Procurement. The Education and Work Pathways segment offers cloud-based student and learning management systems for education and training providers to manage the student lifecycle from student enrolment to course completion. This segment also provides platforms to help state governments to manage vocational education and training programs; software platforms for the pathways and back-to-work sector to manage apprentices and job seekers; and competency assessment and skills profiling tools to track on-the-job training through a qualification. The Workforce Solutions segment offers payroll software, outsourced payroll services, human resource management, and recruitment software solutions to employers to assist with payroll and management of their employees. This segment also provides human resource (HR) administration and talent management services, such as employee records, workplace health and safety, and organizational structure. The Government and Justice segment offers government and justice case management software as a service solution to local and state governments, and justice departments; and provides asset management, property, licensing and compliance, finance, HR and payroll, customer management, and courts and justice products. ReadyTech Holdings Limited was founded in 1998 and is headquartered in Sydney, Australia.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

ReadyTech Holdings reported revenue of A$122M in FY2025 versus A$50.0M in FY2021, a compound +24.9%/yr. Reported net income was −A$16.1M in FY2025.

Growth Quality 68/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
A$122M
Latest YoY
+7.1%
Avg. growth/yr (3Y)
+15.9%
Avg. growth/yr (5Y)
+25.4%
Avg. growth/yr (9Y)
+20.1%
Revenue +24.9%/yr
FY21 A$50.0M
FY22 A$78.3M
FY23 A$103M
FY24 A$114M
FY25 A$122M
Net income
FY21 A$2.2M
FY22 A$8.8M
FY23 A$5.0M
FY24 A$5.5M
FY25 −A$16.1M

RDY screens 47% overvalued. Compare with SAP SE →

Share or link this analysis
For bloggers & editors: embed code + live data

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). "ReadyTech Holdings Fair Value". https://www.fairvalue-calculator.com/stock/RDY

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

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 33 · Bottom 25%
Fair Value upside −47% · Below median
Return on equity (TTM) 1% · Below median
Return on assets 1% · Above median
Net margin (TTM) 1% · Below median
Operating margin (TTM) -0% · Below median
Revenue growth 6% · Below median
Debt / equity 0.40× · Higher than 75% of peers

Valuation Multiples vs Software - Application median · lower = cheaper

P/E (TTM) 161.0× · Pricier than 75% of peers
P/B 0.99× · Cheaper than median
P/S (TTM) 1.12× · Cheaper than median
P/FCF 34.9× · Pricier than 75% of peers
EV/EBITDA 44.9× · 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 28 · sector 38
PAST 4 · sector 13
HEALTH 80 · 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 18, 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%

Compare ReadyTech Holdings with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Technology stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is ReadyTech Holdings (RDY) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of A$0.8900 versus a price of A$1.69, about −47% (overvalued).
What is the fair value of RDY?
Our model-based fair value for ReadyTech Holdings is A$0.8900 (as of Jul 18, 2026), built from audited fundamentals. The current price is A$1.69.
What is the quality score of RDY?
ReadyTech Holdings has a Quality Score of 33/100. 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 ReadyTech Holdings (RDY)?
ReadyTech Holdings reported trailing-twelve-month revenue of about A$125M (latest available figure, as of Jul 18, 2026).
What is the net profit margin of RDY?
The net profit margin of ReadyTech Holdings is about 1.0%, meaning it keeps roughly 1.0% of revenue as net income. 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.

14 days Pro free · no card

Track ReadyTech Holdings and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.