Reckon Ltd (RKN) Fair Value & Analysis
Technology · AU · Market cap A$48.2M (≈ $34.6M) · ISIN AU000000RKN9
What is Reckon Ltd really worth?
A strong business, trading 67% below our fair value of A$1.38.
Strengths
Risks
For context
Fair value as of: Aug 25, 2026
From 22 valuation models · updated 7 days ago
Fair value updated Aug 25, 2026, revised from A$1.82 to A$1.38 (−24.2%) since Aug 13, 2026. Share price +8.2% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters 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$1.04). 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.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 25, 2026.
How to read this chart
60‑month range A$0.3556 – A$0.6514 · fair‑value band A$1.04 – A$1.73 · the A$0.4600 price screens below the A$1.38 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 25, 2026.
Analysis
Reckon Ltd (RKN) currently trades at A$0.4600, while our model-based Fair Value estimate is A$1.38, implying the stock looks roughly 66.7% undervalued today. The Quality Score stands at 79/100 (high quality), in the Technology sector. Bull case: the DCF Models group reads highest at a median of A$1.85 per share, and 20 of the 22 models we run sit above the A$0.4600 price. Bear case: the Asset-Based group reads lowest at A$0.1500, and 2 of the 22 models stay below the price. Evidence for this calculation is low.
Over the trailing twelve months, Reckon Ltd generated revenue of A$62.4M at a net margin of 11.8%. Revenue grew 14.6% year over year. It earns a return on equity of 29.1%. Net debt stands at A$10.8M. Fundamentals as of Aug 25, 2026
Our scenario range runs from A$1.04 (bear case) to A$1.73 (bull case); at A$0.4600, the current price sits below 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 29% below its 52-week high and 14% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at −38% fair-value upside, at 200%, RKN screens cheaper than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly A$0.0301 per share, which is 2.2 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.
All 22 models by family
Widest divergence: DCF Models (A$1.85) versus Asset-Based (A$0.1500). Highest evidence: FCF DCF (80).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 25, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 78 · Market factors (momentum, volatility) 41
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.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Reckon Limited provides software solutions in Australia, New Zealand, the United States, and internationally. 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 …
Full company description
Reckon Limited provides software solutions in Australia, New Zealand, the United States, and internationally. 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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
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.
of which total revenue −5.8 % · buybacks/dilution +0.9 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
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Peer Group
Software - Application · 727 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.
Valuation Multiples vs Software - Application median · lower = cheaper
Strength profile in five axes (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.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Software - Application stocks, each showing price versus our Fair Value estimate (as of Aug 25, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| SAP SE SAP | €191.32 | €169.59 | −11% |
| Shopify Inc SHOP | C$209.78 | C$28.76 | −86% |
| Uber Technologies, Inc UBER | $78.82 | $43.66 | −45% |
| Salesforce, Inc CRM | $252.05 | $249.28 | −1% |
| ServiceNow, Inc NOW | $138.43 | $43.73 | −68% |
| Cadence Design Systems, Inc CDNS | $340.39 | $112.57 | −67% |
| Snowflake Inc SNOW | $329.11 | $42.27 | −87% |
| Adobe Inc ADBE | $289.15 | $454.04 | +57% |
| Automatic Data Processing, Inc ADP | $284.68 | $177.51 | −38% |
| Intuit Inc INTU | $348.00 | $363.46 | +4% |
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