Electro Optic Systems Holdings Limited

ASX:EOS Stock Report

Market Cap: AU$228.6m

Electro Optic Systems Holdings Valuation

Is EOS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of EOS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EOS (A$1.17) is trading below our estimate of fair value (A$4.36)

Significantly Below Fair Value: EOS is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EOS?

Key metric: As EOS is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for EOS. This is calculated by dividing EOS's market cap by their current revenue.
What is EOS's PS Ratio?
PS Ratio0.8x
SalesAU$287.59m
Market CapAU$228.65m

Price to Sales Ratio vs Peers

How does EOS's PS Ratio compare to its peers?

The above table shows the PS ratio for EOS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.8x
ASB Austal
0.8x9.8%AU$1.2b
QHL Quickstep Holdings
0.3xn/aAU$28.3m
DRO DroneShield
9.8x32.8%AU$693.3m
HCL HighCom
0.4x13.1%AU$16.9m
EOS Electro Optic Systems Holdings
0.8x4.5%AU$228.6m

Price-To-Sales vs Peers: EOS is good value based on its Price-To-Sales Ratio (0.8x) compared to the peer average (2.8x).

Price to Sales Ratio vs Industry

How does EOS's PS Ratio compare vs other companies in the Global Aerospace & Defense Industry?

47 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.2.9x8.4%
EOS Electro Optic Systems Holdings
 0.8x4.5%US$149.34m
EOS 0.8xIndustry Avg. 2.9xNo. of Companies47PS03.26.49.612.816+
47 CompaniesEstimated GrowthMarket Cap
Industry Avg.2.9x18.0%
EOS Electro Optic Systems Holdings
 0.8x97.2%US$149.34m
No more companies

Price-To-Sales vs Industry: EOS is good value based on its Price-To-Sales Ratio (0.8x) compared to the Global Aerospace & Defense industry average (2.9x).

Price to Sales Ratio vs Fair Ratio

What is EOS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EOS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.8x
Fair PS Ratio1.1x

Price-To-Sales vs Fair Ratio: EOS is good value based on its Price-To-Sales Ratio (0.8x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst EOS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$1.17
AU$2.06
+76.3%
24.8%AU$2.80AU$1.40n/a4
Nov ’25AU$1.41
AU$1.81
+28.2%
37.9%AU$2.80AU$0.79n/a5
Oct ’25AU$1.37
AU$1.81
+32.0%
37.9%AU$2.80AU$0.79n/a5
Sep ’25AU$1.52
AU$1.81
+19.3%
37.9%AU$2.80AU$0.79n/a5
Aug ’25AU$1.81
AU$1.59
-12.3%
34.1%AU$2.20AU$0.79n/a4
Jul ’25AU$1.56
AU$1.56
+0.2%
32.9%AU$2.10AU$0.79n/a4
Jun ’25AU$1.28
AU$1.59
+24.0%
34.1%AU$2.20AU$0.79n/a4
May ’25AU$1.57
AU$1.58
+0.8%
34.3%AU$2.20AU$0.79n/a4
Apr ’25AU$1.66
AU$1.61
-2.9%
35.6%AU$2.30AU$0.79n/a4
Mar ’25AU$1.81
AU$1.88
+4.2%
19.9%AU$2.30AU$1.39n/a3
Feb ’25AU$1.16
AU$1.45
+24.7%
7.6%AU$1.60AU$1.35n/a3
Jan ’25AU$1.04
AU$1.34
+28.8%
8.8%AU$1.50AU$1.22n/a3
Dec ’24AU$0.96
AU$1.26
+30.2%
2.6%AU$1.30AU$1.22n/a3
Nov ’24AU$0.91
AU$1.26
+38.1%
2.6%AU$1.30AU$1.22AU$1.413
Oct ’24AU$0.98
AU$1.26
+28.2%
2.6%AU$1.30AU$1.22AU$1.373
Sep ’24AU$0.86
AU$1.29
+50.0%
0.8%AU$1.30AU$1.28AU$1.522
Aug ’24AU$1.19
AU$1.34
+13.1%
4.5%AU$1.40AU$1.28AU$1.812

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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