Sono-Tek Valuation

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

SOTK ($4.62) is trading below our estimate of [[fair value]] ($4.93)

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: SOTK ($4.62) is trading below our estimate of fair value ($4.93)

Significantly Below Fair Value: SOTK is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SOTK. This is calculated by dividing SOTK's market cap by their current earnings.
What is SOTK's PE Ratio?
PE Ratio	47.9x
Earnings	US$1.52m
Market Cap	US$72.77m

SOTK key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3x
Enterprise Value/EBITDA	32.4x
PEG Ratio	-14.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SOTK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	27.2x
RSKI.A George Risk Industries	10.6x	n/a	US$83.2m
ACFN Acorn Energy	41.7x	n/a	US$47.8m
AATC Autoscope Technologies	9x	n/a	US$43.8m
SNT Senstar Technologies	47.6x	n/a	US$69.7m
SOTK Sono-Tek	47.9x	-3.4%	US$72.8m

Price-To-Earnings vs Peers: SOTK is expensive based on its Price-To-Earnings Ratio (47.9x) compared to the peer average (27.2x).

Price to Earnings Ratio vs Industry

How does SOTK's PE Ratio compare vs other companies in the US Electronic Industry?

4 Companies	Price / Earnings	Estimated Growth	Market Cap
SHMD SCHMID Group	2.8x	n/a	US$106.58m
SGE Strong Global Entertainment	3.8x	n/a	US$12.27m
SPEC Spectaire Holdings	0.04x	n/a	US$1.02m
SMX SMX (Security Matters)	0.5x	n/a	US$678.13k

No more companies available in this PE range

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: SOTK is expensive based on its Price-To-Earnings Ratio (47.9x) compared to the US Electronic industry average (24.5x).

Price to Earnings Ratio vs Fair Ratio

What is SOTK'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.

SOTK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	47.9x
Fair PE Ratio	11.3x

Price-To-Earnings vs Fair Ratio: SOTK is expensive based on its Price-To-Earnings Ratio (47.9x) compared to the estimated Fair Price-To-Earnings Ratio (11.3x).

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 SOTK forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	US$4.62	US$9.63 +108.3%	3.9%	US$10.00	US$9.25	n/a	2
Nov ’25	US$4.27	US$9.63 +125.4%	3.9%	US$10.00	US$9.25	n/a	2
Oct ’25	US$4.18	US$9.63 +130.3%	3.9%	US$10.00	US$9.25	n/a	2
Sep ’25	US$4.15	US$9.63 +131.9%	3.9%	US$10.00	US$9.25	n/a	2
Aug ’25	US$3.89	US$9.63 +147.4%	3.9%	US$10.00	US$9.25	n/a	2
Jul ’25	US$4.15	US$9.88 +138.0%	1.3%	US$10.00	US$9.75	n/a	2
Jun ’25	US$4.48	US$9.88 +120.4%	1.3%	US$10.00	US$9.75	n/a	2
May ’25	US$4.60	US$9.88 +114.7%	1.3%	US$10.00	US$9.75	n/a	2
Apr ’25	US$4.92	US$9.88 +100.7%	1.3%	US$10.00	US$9.75	n/a	2
Mar ’25	US$5.28	US$9.88 +87.0%	1.3%	US$10.00	US$9.75	n/a	2
Feb ’25	US$5.57	US$9.88 +77.4%	1.3%	US$10.00	US$9.75	n/a	2
Jan ’25	US$5.41	US$9.88 +82.5%	1.3%	US$10.00	US$9.75	n/a	2
Dec ’24	US$5.04	US$9.75 +93.5%	2.6%	US$10.00	US$9.50	n/a	2
Nov ’24	US$5.20	US$9.75 +87.5%	2.6%	US$10.00	US$9.50	US$4.27	2

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.

Discover undervalued companies

LG Display

₩4.9t

Engages in the manufacture and sale of thin-film transistor liquid crystal display (TFT-LCD) and organic light emitting diode (OLED) technology-based display panels.

LPL

₩3.45

0.9%

-29.3%

VerifyMe

US$7.3m

Provides traceability and customer support services through software and process technology.

VRME

US$0.62

-38.3%

-41.8%

Arrow Electronics

US$6.2b

Provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

ARW

US$119.26

3.5%

-0.6%