Reckon (ASX:RKN) EV-to-EBIT: 5.63 (As of Aug. 09, 2026) — 56% Below Median

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ASX:RKN Reckon Ltd ASX:RKN
40 GF Score
Price A$0.48
GF Value A$0.62
Valuation Modestly Undervalued
! 3 Warning Signs
View Full Analysis

What is Reckon EV-to-EBIT?

Reckon ASX:RKN -2.06% 40 EV-to-EBIT is 5.63 as of Aug. 09, 2026, which is 56% below its 10-year median of 12.73. GuruFocus rates ASX:RKN with a GF Score™ of 40/100 and a GF Value™ of A$0.62 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,772 Software companies, Reckon ranks better than 82% on this metric.

EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Reckon's Enterprise Value is A$57.65 Mil. Reckon's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was A$10.25 Mil. Therefore, Reckon's EV-to-EBIT for today is 5.63.

The historical rank and industry rank for Reckon's EV-to-EBIT or its related term are showing as below:

ASX:RKN' s EV-to-EBIT Range Over the Past 10 Years
Min: 5.45   Med: 12.73   Max: 62.46
Current: 5.63

During the past 13 years, the highest EV-to-EBIT of Reckon was 62.46. The lowest was 5.45. And the median was 12.73.

ASX:RKN's EV-to-EBIT is ranked better than
82% of 1772 companies
in the Software industry
Industry Median: 13.96 vs ASX:RKN: 5.63

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %. Reckon's Enterprise Value for the quarter that ended in Jun. 2026 was A$50.29 Mil. Reckon's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was A$10.25 Mil. Reckon's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 20.38%.


Reckon  (ASX:RKN) EV-to-EBIT Explanation

This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %.

Reckon's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jun. 2026 is calculated as:

Earnings Yield (Joel Greenblatt) % (Q: Jun. 2026 ) =EBIT / Enterprise Value (Q: Jun. 2026 )
=10.249/50.28895
=20.38 %

Reckon's Enterprise Value for the quarter that ended in Jun. 2026 was A$50.29 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Reckon's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was A$10.25 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Reckon EV-to-EBIT Related Terms


Reckon EV-to-EBIT Historical Data

* Premium members only.

The historical data trend for Reckon's EV-to-EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Reckon EV-to-EBIT Chart

Reckon Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EV-to-EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.35 15.79 12.99 16.10 7.41

Reckon Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25 Jun26
EV-to-EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 16.10 0.00 7.41 0.00

ASX:RKN vs QH, SHOP, UBER: EV-to-EBIT Comparison

For the Software - Application subindustry, Reckon's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Reckon EV-to-EBIT vs Software Industry

For the Software industry and Technology sector, Reckon's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Reckon's EV-to-EBIT falls into.


ASX:RKN
40GF Score
Reckon Ltd ASX:RKN
EV-to-EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Reckon EV-to-EBIT Calculation

Reckon's EV-to-EBIT for today is calculated as:

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=57.653/10.249
=5.63

Reckon's current Enterprise Value is A$57.65 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Reckon's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 was A$10.25 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EV-to-EBIT →
What does a EV-to-EBIT of 5.63 mean?
Reckon (ASX:RKN) has a EV-to-EBIT of 5.63 as of Aug. 09, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Reckon and its competitors. This is 56% below median its historical median of 12.73. Over the past decade, Reckon's EV-to-EBIT has ranged from 5.45 to 62.46. According to the industry distribution chart, Reckon ranks #319 out of 1772 companies in the Software industry, placing it in the top 18%.
Is Reckon's EV-to-EBIT too high?
Reckon's current EV-to-EBIT of 5.63 is 56% below median its 10-year median of 12.73. Over the past 10 years, this metric has ranged from a low of 5.45 to a high of 62.46. The Software industry median EV-to-EBIT is 13.96. Reckon's value of 5.63 is 59.7% below this industry median. Based on the distribution chart, Reckon ranks #319 out of 1772 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Reckon has a GF Score™ of 40/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Reckon's EV-to-EBIT compare to QH and SHOP?
According to the Software industry distribution chart, Reckon ranks #319 out of 1772 companies for EV-to-EBIT. This places Reckon in the top 18% of its industry — outperforming the majority of peers. The industry median EV-to-EBIT is 13.96. Reckon's value of 5.63 is 59.7% below this benchmark. Historically, Reckon's own EV-to-EBIT has ranged from 5.45 to 62.46 over the past decade. While the company's 10-year median is 12.73 vs. the industry median of 13.96, Reckon has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Software company?
The median EV-to-EBIT among Software companies is 13.96, based on 1,772 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Reckon's current EV-to-EBIT of 5.63 is 59.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Reckon and its competitors. For the Software industry, the median EV-to-EBIT is 13.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reckon's current EV-to-EBIT is 5.63, which is 56% below median its own 10-year median of 12.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reckon stock overvalued right now?
Based on GuruFocus' analysis, Reckon (ASX:RKN) is currently considered Modestly Undervalued. The stock's GF Value™ is A$0.62, compared to a current price of A$0.48 — trading 23.4% below its estimated fair value. The current EV-to-EBIT is 5.63, which is 56% below median its 10-year median of 12.73 and 59.7% below the Software industry median of 13.96. Reckon's overall GF Score™ is 40/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Reckon (ASX:RKN), the current EV-to-EBIT is 5.63 as of Aug. 09, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Reckon (ASX:RKN) Overvalued in 2026?

Based on GuruFocus' analysis, Reckon stock appears to be undervalued. The current stock price of A$0.48 is trading 23.4% below its estimated GF Value™ of A$0.62. GuruFocus considers Reckon to be Modestly Undervalued.

Key valuation signals for ASX:RKN:

  • EV-to-EBIT: 5.63 (56% below median its 10-year median of 12.73)
  • GF Value™: A$0.62 vs. price of A$0.48 (23.4% below fair value)
  • GF Score™: 40/100 with 3 warning signs
  • Industry Position: 59.7% below the Software median (#319 of 1772)

No single metric tells the full story. See the ASX:RKN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Reckon Business Description

Other Exchanges UVW:Germany
Address 100 Pacific Highway, Level 2, North Sydney, Sydney, NSW, AUS, 2060
Reckon Ltd provides accounting and payroll software to the small and medium enterprise market. It operates in two operating divisions: development, distribution and support of business accounting and personal financial software, as well as related products and services. Products sold in this division include Reckon Accounts, Reckon One and Cashflow Manager; and Legal Group - development, distribution and support of cost recovery, cost management, scan and cloud-based integration platforms under the nQ Zebraworks and Zebraworks brands predominantly to the legal market. The company's geographical segments are Australia, the United States, and Other countries. The company generates the majority of its revenue from Australia, while it also has its presence in United States and Other Countries.
40GF Score

Get the complete analysis for ASX:RKN

EV-to-EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$0.48
Price
A$0.62
GF Value