Reckon Limited

ASX:RKN Stock Report

Market Cap: AU$63.4m

Reckon Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: RKN (A$0.56) is trading above our estimate of fair value (A$0.53)

Significantly Below Fair Value: RKN is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As RKN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RKN. This is calculated by dividing RKN's market cap by their current earnings.
What is RKN's PE Ratio?
PE Ratio13.1x
EarningsAU$4.85m
Market CapAU$63.45m

Price to Earnings Ratio vs Peers

How does RKN's PE Ratio compare to its peers?

The above table shows the PE ratio for RKN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average87.6x
IRI Integrated Research
3.9x-20.4%AU$108.2m
ESK Etherstack
92.2xn/aAU$26.4m
SYM Symbio Holdings
127.7x44.5%AU$225.7m
EOL Energy One
126.9x48.5%AU$185.4m
RKN Reckon
13.1x18.3%AU$63.4m

Price-To-Earnings vs Peers: RKN is good value based on its Price-To-Earnings Ratio (13.1x) compared to the peer average (88.1x).

Price to Earnings Ratio vs Industry

How does RKN's PE Ratio compare vs other companies in the AU Software Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
IRI Integrated Research
3.9x-20.4%US$70.34m
No more companies available in this PE range
RKN 13.1xIndustry Avg. 63.1xNo. of Companies3PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RKN is good value based on its Price-To-Earnings Ratio (13.1x) compared to the Australian Software industry average (63.1x).

Price to Earnings Ratio vs Fair Ratio

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

RKN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.1x
Fair PE Ratio32.5x

Price-To-Earnings vs Fair Ratio: RKN is good value based on its Price-To-Earnings Ratio (13.1x) compared to the estimated Fair Price-To-Earnings Ratio (32.5x).

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 RKN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$0.56
AU$0.81
+43.8%
28.0%AU$1.03AU$0.58n/a2
Nov ’25AU$0.56
AU$0.81
+42.5%
28.0%AU$1.03AU$0.58n/a2
Oct ’25AU$0.52
AU$0.81
+55.8%
22.7%AU$1.03AU$0.58n/a3
Sep ’25AU$0.52
AU$0.81
+57.3%
22.7%AU$1.03AU$0.58n/a3
Aug ’25AU$0.58
AU$0.78
+35.1%
12.4%AU$0.88AU$0.65n/a3
Jul ’25AU$0.52
AU$0.78
+50.6%
12.4%AU$0.88AU$0.65n/a3
Jun ’25AU$0.54
AU$0.78
+45.1%
12.4%AU$0.88AU$0.65n/a3
May ’25AU$0.54
AU$0.78
+46.4%
12.4%AU$0.88AU$0.65n/a3
Apr ’25AU$0.54
AU$0.78
+45.1%
12.4%AU$0.88AU$0.65n/a3
Mar ’25AU$0.56
AU$0.77
+37.8%
15.0%AU$0.88AU$0.65n/a2
Feb ’25AU$0.58
AU$0.72
+23.1%
16.7%AU$0.84AU$0.60n/a2
Jan ’25AU$0.56
AU$0.72
+27.4%
16.7%AU$0.84AU$0.60n/a2
Dec ’24AU$0.55
AU$0.72
+30.9%
16.7%AU$0.84AU$0.60n/a2

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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