Appen Limited

OTCPK:APPE.F Stock Report

Market Cap: US$379.7m

Appen Valuation

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

Below Fair Value: APPE.F ($1.8) is trading below our estimate of fair value ($5.35)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for APPE.F?

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

The above table shows the Price to Sales ratio for APPE.F. This is calculated by dividing APPE.F's market cap by their current revenue.
What is APPE.F's PS Ratio?
PS Ratio1.5x
SalesUS$247.92m
Market CapUS$379.74m

Price to Sales Ratio vs Peers

How does APPE.F's PS Ratio compare to its peers?

The above table shows the PS ratio for APPE.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.9x
BBAI BigBear.ai Holdings
3.5x17.3%US$523.7m
UIS Unisys
0.3x3.4%US$516.1m
HCKT Hackett Group
2.8x5.9%US$843.0m
PFSW PFSweb
0.8xn/aUS$170.5m
APPE.F Appen
1.5x4.3%US$584.0m

Price-To-Sales vs Peers: APPE.F is good value based on its Price-To-Sales Ratio (1.5x) compared to the peer average (2.1x).

Price to Sales Ratio vs Industry

How does APPE.F'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
APPE.F 1.5xIndustry Avg. 2.0xNo. of Companies27PS02.44.87.29.612+
27 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: APPE.F is good value based on its Price-To-Sales Ratio (1.5x) compared to the US IT industry average (2x).

Price to Sales Ratio vs Fair Ratio

What is APPE.F'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.

APPE.F PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.5x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate APPE.F's Price-To-Sales Fair Ratio for valuation analysis.

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 APPE.F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$1.80
US$1.06
-41.4%
52.4%US$1.64US$0.33n/a5
Nov ’25n/a
US$0.95
0%
57.2%US$1.64US$0.33n/a5
Oct ’25n/a
US$0.64
0%
30.3%US$0.83US$0.35n/a5
Sep ’25n/a
US$0.55
0%
40.4%US$0.81US$0.26n/a6
Aug ’25US$0.49
US$0.38
-21.8%
21.4%US$0.52US$0.25n/a6
Jul ’25n/a
US$0.36
0%
14.7%US$0.40US$0.25n/a6
Jun ’25n/a
US$0.36
0%
14.7%US$0.40US$0.25n/a6
May ’25n/a
US$0.34
0%
15.3%US$0.39US$0.25n/a6
Apr ’25US$0.37
US$0.34
-8.8%
15.3%US$0.39US$0.25n/a6
Mar ’25US$0.36
US$0.30
-16.1%
26.7%US$0.39US$0.16n/a6
Feb ’25US$0.21
US$0.55
+157.0%
66.6%US$1.06US$0.17n/a6
Jan ’25US$0.43
US$0.77
+78.2%
33.3%US$1.09US$0.41n/a8
Dec ’24n/a
US$0.76
0%
37.4%US$1.21US$0.40n/a10
Nov ’24US$0.54
US$1.00
+84.5%
16.4%US$1.33US$0.65n/a12
Oct ’24US$0.78
US$1.02
+29.6%
16.9%US$1.39US$0.66n/a12
Sep ’24US$1.03
US$1.08
+4.8%
20.4%US$1.56US$0.66n/a12
Aug ’24US$1.50
US$1.59
+5.7%
22.0%US$2.18US$0.89US$0.4912
Jul ’24n/a
US$1.59
0%
22.0%US$2.18US$0.89n/a12
Jun ’24US$1.55
US$1.52
-2.2%
23.8%US$2.17US$0.89n/a12
May ’24US$1.95
US$1.56
-20.1%
13.6%US$1.88US$1.34n/a11
Apr ’24n/a
US$1.61
0%
18.2%US$2.32US$1.33US$0.3712
Mar ’24US$1.57
US$1.66
+5.9%
18.3%US$2.35US$1.35US$0.3612
Feb ’24US$1.84
US$2.07
+12.8%
19.8%US$2.99US$1.53US$0.2112
Jan ’24n/a
US$2.07
0%
19.8%US$2.99US$1.53US$0.4312
Dec ’23US$1.90
US$2.05
+8.1%
20.0%US$2.85US$1.46n/a12
Nov ’23US$1.74
US$2.08
+19.5%
19.2%US$2.84US$1.45US$0.5412

Analyst Forecast: Target price is lower than the current share price.

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