MITK
Mitek Systems Inc
Price:  
9.6 
USD
Volume:  
599,013
United States | Software

MITK Fair Value

-74.3 %
Upside

What is the fair value of MITK?

As of 2025-05-15, the Fair Value of Mitek Systems Inc (MITK) is 2.46 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 9.6 USD, the upside of Mitek Systems Inc is -74.3%.

Is MITK a good investment?

With the market price of 9.6 USD and our fair value calculation, Mitek Systems Inc (MITK) is not a good investment. Investing in MITK stocks now will result in a potential loss of 74.3%.

9.6 USD
Stock Price
2.46 USD
Fair Price
FAIR VALUE CALCULATION

MITK Fair Value

Peter Lynch's formula is:

MITK Fair Value
= Earnings Growth Rate x TTM EPS
MITK Fair Value
= 25 x 0.1
MITK Fair Value
= 2.46

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
09-202009-202109-202209-202309-20245Y Avg
Net income7.8838.033.286
YoY growth1214.3%2.6%-62.5%167.6%-59.2%252.6%

MITK Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
ChannelAdvisor Corp6681.332.1939.4%
Rand Worldwide Inc5070.11.52-89.9%
Zix Corp486-0.1-0.56-106.6%
Bitfarms Ltd6280.10.54-69.8%
American Software Inc3690.34.32-60.6%
Park City Group Inc1780.37.69-21.6%
eGain Corp1420.23.84-24.1%
Triterras Inc136--100%
Cheetah Mobile Inc12543.930.35647.4%
Zoomd Technologies Ltd780.13.13296.2%

MITK Fair Value - Key Data

Market Cap (mil)434
P/E97.4x
Forward P/E1618.3x
EPS0.1
Avg earnings growth rate252.6%
TTM earnings4

MITK Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.