Quarterhill Inc.

TSX:QTRH Stock Report

Market Cap: CA$187.4m

Quarterhill Valuation

Is QTRH 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 QTRH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: QTRH (CA$1.69) is trading below our estimate of fair value (CA$8.68)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for QTRH. This is calculated by dividing QTRH's market cap by their current revenue.
What is QTRH's PS Ratio?
PS Ratio0.9x
SalesUS$157.24m
Market CapUS$133.15m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for QTRH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.2x
HAI Haivision Systems
1x5.2%CA$141.2m
STC Sangoma Technologies
0.9x6.1%CA$303.1m
VCM Vecima Networks
1.5x18.3%CA$426.0m
CMI C-Com Satellite Systems
5.3xn/aCA$53.7m
QTRH Quarterhill
0.9x8.3%CA$187.4m

Price-To-Sales vs Peers: QTRH is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (2.2x).

Price to Sales Ratio vs Industry

How does QTRH's PS Ratio compare vs other companies in the CA Communications Industry?

0 CompaniesPrice / SalesEstimated GrowthMarket Cap
No more companies available in this PS range
QTRH 0.9xIndustry Avg. 1.1xNo. of Companies2PS00.81.62.43.24+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: QTRH is good value based on its Price-To-Sales Ratio (0.9x) compared to the North American Communications industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is QTRH'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.

QTRH PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.9x
Fair PS Ratio0.5x

Price-To-Sales vs Fair Ratio: QTRH is expensive based on its Price-To-Sales Ratio (0.9x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).

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 QTRH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$1.69
CA$2.18
+29.2%
6.0%CA$2.30CA$2.00n/a3
Nov ’25CA$1.61
CA$2.28
+41.8%
10.8%CA$2.60CA$2.00n/a3
Oct ’25CA$1.67
CA$2.28
+36.7%
10.8%CA$2.60CA$2.00n/a3
Sep ’25CA$1.62
CA$2.28
+40.9%
10.8%CA$2.60CA$2.00n/a3
Aug ’25CA$1.70
CA$2.28
+34.3%
10.8%CA$2.60CA$2.00n/a3
Jul ’25CA$1.77
CA$2.28
+29.0%
10.8%CA$2.60CA$2.00n/a3
Jun ’25CA$1.73
CA$2.28
+32.0%
10.8%CA$2.60CA$2.00n/a3
May ’25CA$1.72
CA$2.17
+26.0%
14.4%CA$2.50CA$1.75n/a3
Apr ’25CA$1.95
CA$2.17
+11.1%
14.4%CA$2.50CA$1.75n/a3
Mar ’25CA$1.72
CA$1.72
-0.2%
15.8%CA$2.00CA$1.35n/a3
Feb ’25CA$1.90
CA$1.72
-9.6%
15.8%CA$2.00CA$1.35n/a3
Jan ’25CA$1.95
CA$1.72
-12.0%
15.8%CA$2.00CA$1.35n/a3
Dec ’24CA$1.65
CA$1.72
+4.0%
15.8%CA$2.00CA$1.35n/a3
Nov ’24CA$1.48
CA$1.72
+16.0%
15.8%CA$2.00CA$1.35CA$1.613
Oct ’24CA$1.46
CA$1.72
+17.6%
15.8%CA$2.00CA$1.35CA$1.673
Sep ’24CA$1.45
CA$1.98
+36.2%
25.6%CA$2.75CA$1.35CA$1.624
Aug ’24CA$1.50
CA$1.95
+30.0%
26.5%CA$2.75CA$1.35CA$1.704
Jul ’24CA$1.48
CA$1.95
+32.2%
26.5%CA$2.75CA$1.35CA$1.774
Jun ’24CA$1.26
CA$2.43
+93.2%
34.9%CA$3.50CA$1.50CA$1.734
May ’24CA$1.30
CA$2.25
+73.1%
24.0%CA$3.00CA$1.75CA$1.723
Apr ’24CA$1.53
CA$2.25
+47.1%
24.0%CA$3.00CA$1.75CA$1.953
Mar ’24CA$1.94
CA$2.73
+40.7%
31.5%CA$4.25CA$1.75CA$1.725
Feb ’24CA$1.98
CA$2.73
+37.9%
31.5%CA$4.25CA$1.75CA$1.905
Jan ’24CA$1.58
CA$2.73
+72.8%
31.5%CA$4.25CA$1.75CA$1.955
Dec ’23CA$1.50
CA$2.73
+82.0%
31.5%CA$4.25CA$1.75CA$1.655
Nov ’23CA$1.67
CA$2.93
+75.4%
24.8%CA$4.00CA$2.00CA$1.485

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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