Reckon Ltd (RKN) fair value: what the stock is really worth
As of Oct 22, 2026: fair value (intrinsic value) of Reckon Ltd stock A$1.20, price A$0.40, upside +200.0%, quality 79 out of 100. Rating: strongly undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 4, 2026.
How to read this chart
60‑month range A$0.3850 – A$0.6514 · fair‑value band A$0.9033 – A$1.50 · the A$0.4000 price screens below the A$1.20 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 4, 2026.
Follow Reckon in your weekly email
Every Wednesday you see whether Reckon is on track or worth a review, plus price against fair value. Free, up to 3 stocks.
We send you a confirmation link. Unsubscribe with one click.
Reckon Limited provides software solutions in Australia, New Zealand, the United States, and internationally.
Show moreShow less
The company offers c, an software as a service cloud-based accounting and payroll software platform, which includes mobile app functionality for small businesses; Reckon Payroll, a cloud payroll software for employee self-service; Reckon invoice to create and send online invoices; Reckon business loans; Reckon Accounts Hosted, an online accounting software for large businesses; Reckon Insights, a financial reporting and analytics software; Reckon Payments that accepts online payments; WABI for reservations, point of sale, team management, inventory, and payments; and Reckon insurance that arrange insurances.
The company also provides bank reconciliation software that imports bank transactions; expense management software for small businesses; Reckon Timesheets, software to track time and manage employee timesheets; and project management software for managing jobs and projects to track profitability.
In addition, it offers Desktop Accounting; Desktop Point of Sale software; Desktop Personal Finances; business accounting and personal financial software, as well as related products and services; and develops, distributes, and supports cost recovery, scan, and cloud-based integration platforms primarily to legal market under the Zebraworks brand name.
The company was incorporated in 1987 and is based in North Sydney, Australia.
Stock analysis
Reckon Ltd (RKN) currently trades at A$0.4000, while our model-based Fair Value estimate is A$1.20, implying the stock looks roughly 66.7% undervalued today.
Show more
Valuation
Bull case: the DCF Models group reads highest at a median of A$2.20 per share, and 20 of the 20 models we run sit above the A$0.4000 price.
Bear case: the Economic Profit group reads lowest at A$0.4200, and 0 of the 20 models stay below the price. Data coverage for this calculation is low.
Scenario range: A$0.9033 (bear) to A$1.50 (bull), the price of A$0.4000 sits below 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 79/100 (high quality), in the Technology sector.
Weak Growth: Revenue growth is weak: less than 2 % a year.
Reckon Ltd reported revenue of A$62.4M in FY2025 versus A$71.1M in FY2021, a compound −3.2%/yr. Reported net income was A$7.4M in FY2025, compounding −6.9%/yr from FY2021.
Key figures
Market cap A$45.3M (≈ $31.8M) Micro · P/E ratio 5.7 · P/S ratio 0.74 · EPS (TTM) A$0.0700 · Dividend yield 6.3% · Net margin 12.3% · Return on equity 26.3% · Return on assets (EBIT) 12.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 73 out of 100 (low confidence).
What moves the price
The share trades about 34% below its 52-week high and 4% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Technology peers we cover trades at 10% fair-value upside, at 200%, RKN screens cheaper than that median.
Fair Value models
BearA$0.9033Fair Value A$1.20BullA$1.50
Price A$0.4000 · Upside +200.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (A$0.0364 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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = 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.40/100
Revenue growth is weak: less than 2 % a year.
Revenue growth 1 year
+15.5%
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.
+6.8%
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.
−0.9%
Start year 2020 (pandemic). Over 10 years: −3.7% a year
Revenue growth 25 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.
+2.1%
’14
’15
’16
’17
’18
’19
’20
’21
’22
’23
’24
’25
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.
+1.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year−5.0%
Dividend (yield on the price)6.3%
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.−5.0% vs −6.1%, steady
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.9% → 16%
Pace: the 5-year rate starts in 2020 (pandemic)
⚠ Revenue per share shrinking 4.6%/yr over ~10Y (margins eroding too) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Price, fair value, quality and upside side by side.
Free, no sign-up
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.Software - Application · 649 stocks
Beats the industry median on 11/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score79 · Top 25%
Fair Value upside+200.0% · Top 25%
Profitability
Return on equity (12 months)26.3% · Top 25%
Return on assets13.1% · Top 25%
Net margin (12 months)12.3% · Above median
Operating margin (12 months)19.7% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)−3.2% · Below median
Dividend yield (12 months)6.3% · Top 25%
Balance sheet
Debt / equity0.25× · Above median
Valuation Multiplesvs Software - Application median · lower = cheaper
P/E (12 months)5.7× · Cheapest 25%
P/B1.77× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
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). "Reckon Ltd Fair Value". https://www.fairvalue-calculator.com/stock/RKN
Frequently asked questions
Is Reckon Ltd (RKN) overvalued or undervalued?
As of Oct 4, 2026, our model estimates a fair value of A$1.20 versus a price of A$0.4000, about +200% upside (undervalued).
What is the fair value of RKN?
Our model-based fair value for Reckon Ltd is A$1.20 (as of Oct 4, 2026), built from audited fundamentals. The current price: A$0.4000.
What is the quality score of RKN?
Reckon Ltd has a Quality Score of 79/100. 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 Reckon Ltd (RKN)?
Our model-based price target is the fair value of A$1.20 (as of Oct 4, 2026) from 20 valuation models. Cautious scenario A$0.9033, optimistic scenario A$1.50. It is a calculation from audited fundamentals, not an analyst target.
What is the Reckon Ltd stock forecast for 2026?
Our models put fair value at A$1.20, about +200% upside versus a price of A$0.4000 (undervalued). Cautious scenario A$0.9033, optimistic scenario A$1.50. The calculation is refreshed regularly with new filings.
What is the revenue of Reckon Ltd (RKN)?
Reckon Ltd reported trailing-twelve-month revenue of about A$61.4M (latest available figure, as of Oct 4, 2026).
Does Reckon Ltd pay a dividend?
Reckon Ltd currently shows a dividend yield of 6.25% relative to its recent price (as of Oct 4, 2026).
What is the intrinsic value of Reckon Ltd (RKN)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Reckon Ltd it is A$1.20 per share (as of Oct 4, 2026), against a price of A$0.4000. It is the blended result of 20 valuation models (cash flow, earnings, asset, dividend).
Is Reckon Ltd stock overvalued or undervalued in 2026?
As of Oct 4, 2026, RKN trades below its calculated fair value: price A$0.4000, fair value A$1.20, a gap of about +200% (undervalued). 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 RKN?
No. The price is what the market pays today (A$0.4000); the fair value is what the company's own numbers justify (A$1.20). For Reckon Ltd the two are A$0.8000 per share apart. That gap is exactly why we show both numbers side by side.
How much is Reckon Ltd worth?
The market values Reckon Ltd at about A$45.3M (market capitalisation, as of Oct 4, 2026). Per share that is A$0.4000; our models calculate a fair value of A$1.20 per share.
What do the bullish and bearish scenarios say about RKN?
Our models span a range for Reckon Ltd: cautious scenario A$0.9033, base A$1.20, optimistic A$1.50 per share (as of Oct 4, 2026, price A$0.4000). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RKN?
Reckon Ltd trades at a price-to-earnings ratio of 5.7 (as of Oct 4, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of A$1.20 is built from several models across several years. Other multiples: PEG 1.1, P/B 1.8, P/S 0.7, EV/EBITDA 15.7.
What is the PEG ratio of RKN?
The PEG ratio of Reckon Ltd is 1.13 (P/E divided by earnings growth, as of Oct 4, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Reckon Ltd (RKN)?
Balance-sheet figures for Reckon Ltd (as of Oct 4, 2026): return on equity 26.3%, debt of 0.25 per unit of equity. They feed the Quality Score of 79/100, which measures business quality independently of the share price.
How far is RKN from its 52-week high?
Reckon Ltd trades at A$0.4000, about 34% below its 52-week high of A$0.6050 and 4% above the low of A$0.3850 (as of Oct 22, 2026). Distance from the high says nothing about value: that is what the fair value of A$1.20 is for.
Which stocks are comparable to Reckon Ltd?
From the same area (Technology) we also value SAP SE, Shopify Inc, Salesforce, Inc, ServiceNow, Inc, 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 Reckon Ltd stock attractive at the current price?
The data as of Oct 4, 2026: price A$0.4000, calculated fair value A$1.20 (+200%), Quality Score 79/100, from 20 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 RKN calculated?
We run Reckon Ltd through 20 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 A$1.20, 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 13.6 % above its aggregate fair value. Reckon Ltd currently trades 67 % below its own fair value, and the market average says nothing about that. 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 Reckon Ltd (RKN)?
The closing price on Oct 22, 2026 was A$0.4000. Our model-based fair value is A$1.20, about +200% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Reckon Ltd right now?
The rarer combination: high quality (79/100) AND below fair value. That earns a closer look rather than a quick verdict. The price is below even our cautious bear case (A$0.9033). The market is more pessimistic than our downside scenario. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
Where does the earnings growth of Reckon Ltd (RKN) come from?
Earnings per share at Reckon Ltd grew −8.7 % a year from 2014 to 2025. Broken into its drivers: revenue per share −4.9 %, EBIT margin −4.7 %, tax rate +0.6 %, residual (interest, one-offs) +0.2 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Reckon Ltd
How large is the market capitalisation of Reckon Ltd (RKN)?
The market capitalisation of Reckon Ltd is A$45.3M (≈ $31.8M). 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 Reckon Ltd (RKN)?
The price-to-sales ratio of Reckon Ltd is 0.74 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Reckon Ltd (RKN)?
Earnings per share at Reckon Ltd are A$0.0700 (price ÷ EPS = P/E 5.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Reckon Ltd (RKN)?
The dividend yield of Reckon Ltd is 6.3% (payout 35.7%). 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 Reckon Ltd (RKN)?
The net margin of Reckon Ltd is 12.3% (last twelve months). 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 Reckon Ltd (RKN)?
The return on equity (ROE) of Reckon Ltd is 26.3% (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 Reckon Ltd (RKN)?
On an EBIT basis the return on assets of Reckon Ltd is 12.4% (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 Reckon Ltd (RKN)?
The operating margin of Reckon Ltd is 19.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Reckon Ltd (RKN)?
Revenue at Reckon Ltd is growing −3.2% versus a year earlier (3y avg +6.8%). 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 Reckon Ltd (RKN)?
Earnings per share at Reckon Ltd are growing +5.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Reckon Ltd (RKN) generate?
The free cash flow of Reckon Ltd is A$23.6M (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Reckon Ltd (RKN) carry?
The net debt of Reckon Ltd is A$10.8M (fiscal year 2025, ≈ 0.5 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
Free · no account needed
Watch Reckon Ltd in the live analysis
One click puts Reckon Ltd on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 28,000+ stock screener.
Thin data
Oct 4, 2026