Research Solutions, Inc.

NasdaqCM:RSSS Stock Report

Market Cap: US$89.8m

Research Solutions Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: RSSS ($3.08) is trading below our estimate of fair value ($7.2)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for RSSS. This is calculated by dividing RSSS's market cap by their current revenue.
What is RSSS's PS Ratio?
PS Ratio2x
SalesUS$46.61m
Market CapUS$89.83m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for RSSS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average10.8x
GLE Global Engine Group Holding
12.6xn/aUS$69.7m
CSPI CSP
2.4xn/aUS$132.5m
ORKT Orangekloud Technology
16.3xn/aUS$61.7m
EAXR Ealixir
11.9xn/aUS$60.3m
RSSS Research Solutions
2x8.1%US$89.8m

Price-To-Sales vs Peers: RSSS is good value based on its Price-To-Sales Ratio (2x) compared to the peer average (10.8x).

Price to Sales Ratio vs Industry

How does RSSS's PS Ratio compare vs other companies in the US IT Industry?

27 CompaniesPrice / SalesEstimated GrowthMarket Cap
KD Kyndryl Holdings
0.5x1.7%US$6.63b
DXC DXC Technology
0.3x-1.9%US$3.83b
RXT Rackspace Technology
0.2x0.7%US$527.96m
UIS Unisys
0.3x3.4%US$516.06m
RSSS 2.0xIndustry Avg. 2.0xNo. of Companies27PS02.44.87.29.612+
27 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: RSSS is expensive based on its Price-To-Sales Ratio (2x) compared to the US IT industry average (2x).

Price to Sales Ratio vs Fair Ratio

What is RSSS'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.

RSSS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: RSSS is expensive based on its Price-To-Sales Ratio (2x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).

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 RSSS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$3.08
US$5.12
+66.1%
13.3%US$6.00US$4.35n/a3
Nov ’25US$2.63
US$5.12
+94.9%
13.3%US$6.00US$4.35n/a3
Oct ’25US$2.71
US$5.12
+88.8%
13.3%US$6.00US$4.35n/a3
Sep ’25US$2.78
US$5.12
+84.1%
13.3%US$6.00US$4.35n/a3
Aug ’25US$2.81
US$5.12
+82.1%
13.3%US$6.00US$4.35n/a3
Jul ’25US$2.59
US$5.12
+97.6%
13.3%US$6.00US$4.35n/a3
Jun ’25US$2.61
US$5.12
+96.0%
13.3%US$6.00US$4.35n/a3
May ’25US$2.87
US$4.78
+66.7%
6.4%US$5.00US$4.35n/a3
Apr ’25US$3.06
US$4.68
+52.8%
7.0%US$5.00US$4.35n/a2
Mar ’25US$3.12
US$4.68
+49.8%
7.0%US$5.00US$4.35n/a2
Feb ’25US$2.77
US$4.68
+68.8%
7.0%US$5.00US$4.35n/a2
Jan ’25US$2.60
US$4.68
+79.8%
7.0%US$5.00US$4.35n/a2
Dec ’24US$2.40
US$4.68
+94.8%
7.0%US$5.00US$4.35n/a2
Nov ’24US$2.35
US$4.68
+98.9%
7.0%US$5.00US$4.35US$2.632
Oct ’24US$2.50
US$4.68
+87.0%
7.0%US$5.00US$4.35US$2.712
Sep ’24US$2.28
US$4.68
+105.0%
7.0%US$5.00US$4.35US$2.782
Aug ’24US$2.17
US$4.68
+115.4%
7.0%US$5.00US$4.35US$2.812
Jul ’24US$2.04
US$4.68
+129.2%
7.0%US$5.00US$4.35US$2.592
Jun ’24US$2.07
US$4.68
+125.8%
7.0%US$5.00US$4.35US$2.612
May ’24US$2.08
US$4.68
+124.8%
7.0%US$5.00US$4.35US$2.872
Apr ’24US$2.01
US$4.68
+132.6%
7.0%US$5.00US$4.35US$3.062
Mar ’24US$2.07
US$4.68
+125.8%
7.0%US$5.00US$4.35US$3.122
Feb ’24US$2.25
US$4.68
+107.8%
7.0%US$5.00US$4.35US$2.772
Jan ’24US$1.92
US$4.68
+143.5%
7.0%US$5.00US$4.35US$2.602
Dec ’23US$2.15
US$4.68
+117.4%
7.0%US$5.00US$4.35US$2.402
Nov ’23US$1.96
US$4.68
+139.1%
7.0%US$5.00US$4.35US$2.352

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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