HiTech Group Australia (ASX:HIT) Intrinsic Value: DCF (Earnings Based): A$1.36 (As of Sep. 01, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ASX:HIT HiTech Group Australia Ltd ASX:HIT
74 GF Score
Price A$1.28
GF Value A$1.81
Valuation Significantly Undervalued
! 5 Warning Signs
View Full Analysis

What is HiTech Group Australia Intrinsic Value: DCF (Earnings Based)?

HiTech Group Australia ASX:HIT -9.57% 74 Intrinsic Value: DCF (Earnings Based) is A$1.36 as of Sep. 01, 2026. GuruFocus rates ASX:HIT with a GF Score™ of 74/100 and a GF Value™ of A$1.81 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 171 Business Services companies, HiTech Group Australia ranks worse than 60.82% on this metric.

As of today (2026-09-01), HiTech Group Australia's intrinsic value calculated from the Discounted Earnings model is A$1.36.

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's predictability rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

HiTech Group Australia's Predictability Rank is 3-Stars.

Margin of Safety (Earnings Based) using Discounted Earnings model for HiTech Group Australia is 6.25%.

The historical rank and industry rank for HiTech Group Australia's Intrinsic Value: DCF (Earnings Based) or its related term are showing as below:

ASX:HIT' s Price-to-DCF (Earnings Based) Range Over the Past 10 Years
Min: 0.58   Med: 0.63   Max: 1.04
Current: 0.94

During the past 13 years, the highest Price-to-Intrinsic-Value-DCF (Earnings Based) Ratio of HiTech Group Australia was 1.04. The lowest was 0.58. And the median was 0.63.

ASX:HIT's Price-to-DCF (Earnings Based) is ranked worse than
60.82% of 171 companies
in the Business Services industry
Industry Median: 0.84 vs ASX:HIT: 0.94

HiTech Group Australia  (ASX:HIT) Intrinsic Value: DCF (Earnings Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book Value per Share, Graham Number, Median Ratio etc, discounted Cash Flow model evaluates the companies based on their future earnings power instead of their assets.


Be Aware

What you need to know about Discounted Earnings model:

1. The Discounted Earnings model evaluates a company based on its future earnings power
2. Growth is taken into account; therefore a faster growth company is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies that are relatively consistent performers.
4. The Discounted Earnings model works poorly for inconsistent performers like cyclicals.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less predictable businesses.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.


HiTech Group Australia Intrinsic Value: DCF (Earnings Based) Related Terms


HiTech Group Australia Intrinsic Value: DCF (Earnings Based) Historical Data

* Premium members only.

The historical data trend for HiTech Group Australia's Intrinsic Value: DCF (Earnings Based) 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.

HiTech Group Australia Intrinsic Value: DCF (Earnings Based) Chart

HiTech Group Australia Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25 Jun26
Intrinsic Value: DCF (Earnings Based)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.00 0.00 2.74 1.36

HiTech Group Australia Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25 Jun26
Intrinsic Value: DCF (Earnings Based) 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 0.00 2.74 0.00 1.36

ASX:HIT vs RHI, KFY, TNET: Intrinsic Value: DCF (Earnings Based) Comparison

For the Staffing & Employment Services subindustry, HiTech Group Australia's Price-to-DCF (Earnings Based), along with its competitors' market caps and Price-to-DCF (Earnings Based) 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.


HiTech Group Australia Price-to-DCF (Earnings Based) vs Business Services Industry

For the Business Services industry and Industrials sector, HiTech Group Australia's Price-to-DCF (Earnings Based) distribution charts can be found below:

* The bar in red indicates where HiTech Group Australia's Price-to-DCF (Earnings Based) falls into.


ASX:HIT
74GF Score
HiTech Group Australia Ltd ASX:HIT
Intrinsic Value: DCF (Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

HiTech Group Australia Intrinsic Value: DCF (Earnings Based) Calculation

This is the intrinsic value calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DCF calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.83%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Growth Rate in the growth stage: g1 = 8.00%
The Growth Rate in the growth stage is initially set as the default 10-Year EPS without NRI Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year EPS without NRI Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year EPS without NRI Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=> HiTech Group Australia's average EPS without NRI Growth Rate in the past 10 years was 8.00%, which is between 5% and 20%. => GuruFocus defaults => Growth Rate: 8.00%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Years of Terminal Growth: y2 = 10

6. EPS without NRI: eps without nri = A$0.097.
GuruFocus DCF calculator is actually a Discounted Earnings calculator, EPS without NRI is used as the default. The reason we are doing this is we found that historically stock prices are more correlated with earnings than free cash flow.

All of the default settings can be changed and the results are calculated automatically.

HiTech Group Australia's Intrinsic Value: DCF (Earnings Based) for today is calculated as:

Intrinsic Value: DCF (Earnings Based)=EPS without NRI*{[(1+g1)/(1+d)+(1+g1)^2/(1+d)^2+...+(1+g1)^10/(1+d)^10]
+(1+g1)^10/(1+d)^10*[(1+g2)/(1+d)+(1+g2)^2/(1+d)^2+...+(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+0.08)/(1+0.11) = 0.97297297297297
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694

Intrinsic Value: DCF (Earnings Based)=EPS without NRI*{[x+x^2+...+x^10]+x^10*[y+y^2+...+y^10]}
=EPS without NRI*[x*(1-x^10)/(1-x)+x^10*y*(1-y^10)/(1-y)]
=0.097*14.0352
=1.36

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(1.36-1.275)/1.36
=6.25 %

* 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.

What does a Intrinsic Value: DCF (Earnings Based) of A$1.36 mean?
HiTech Group Australia (ASX:HIT) has a Intrinsic Value: DCF (Earnings Based) of A$1.36 as of Sep. 01, 2026. Intrinsic Value: DCF (Earnings Based) is the stock value based on a two-stage discounted earnings model. View historical data on HiTech Group Australia and its competitors. According to the industry distribution chart, HiTech Group Australia ranks #104 out of 171 companies in the Business Services industry, placing it in the top 60.8%.
Is HiTech Group Australia's Intrinsic Value: DCF (Earnings Based) too high?
HiTech Group Australia's current Intrinsic Value: DCF (Earnings Based) is A$1.36. Based on the distribution chart, HiTech Group Australia ranks #104 out of 171 companies in the Business Services industry, which is below the industry midpoint. Overall, HiTech Group Australia has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HiTech Group Australia's Intrinsic Value: DCF (Earnings Based) compare to RHI and KFY?
According to the Business Services industry distribution chart, HiTech Group Australia ranks #104 out of 171 companies for Intrinsic Value: DCF (Earnings Based). This places HiTech Group Australia in the lower half of its industry. The industry median Intrinsic Value: DCF (Earnings Based) is 0.84. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Intrinsic Value: DCF (Earnings Based) for a Business Services company?
The median Intrinsic Value: DCF (Earnings Based) among Business Services companies is 0.84, based on 171 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: DCF (Earnings Based) significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: DCF (Earnings Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Intrinsic Value: DCF (Earnings Based) mean?
A high Intrinsic Value: DCF (Earnings Based) can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: DCF (Earnings Based) is the stock value based on a two-stage discounted earnings model. View historical data on HiTech Group Australia and its competitors. For the Business Services industry, the median Intrinsic Value: DCF (Earnings Based) is 0.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HiTech Group Australia's current Intrinsic Value: DCF (Earnings Based) is A$1.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HiTech Group Australia stock overvalued right now?
Based on GuruFocus' analysis, HiTech Group Australia (ASX:HIT) is currently considered Significantly Undervalued. The stock's GF Value™ is A$1.81, compared to a current price of A$1.28 — trading 29.6% below its estimated fair value. The current Intrinsic Value: DCF (Earnings Based) is A$1.36. HiTech Group Australia's overall GF Score™ is 74/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Intrinsic Value: DCF (Earnings Based) calculated?
Intrinsic Value: DCF (Earnings Based) is calculated from a company's financial statements. For HiTech Group Australia (ASX:HIT), the current Intrinsic Value: DCF (Earnings Based) is A$1.36 as of Sep. 01, 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 HiTech Group Australia (ASX:HIT) Overvalued in 2026?

Based on GuruFocus' analysis, HiTech Group Australia stock appears to be undervalued. The current stock price of A$1.28 is trading 29.6% below its estimated GF Value™ of A$1.81. GuruFocus considers HiTech Group Australia to be Significantly Undervalued.

Key valuation signals for ASX:HIT:

  • Intrinsic Value: DCF (Earnings Based): A$1.36
  • GF Value™: A$1.81 vs. price of A$1.28 (29.6% below fair value)
  • GF Score™: 74/100 with 5 warning signs

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


HiTech Group Australia Business Description

Address Gateway Tower, SE3701b, Level 37, 1 Macquarie Place, Sydney, NSW, AUS, 2000
HiTech Group Australia Ltd is engaged in recruitment services for permanent and contract staff to the ICT sector. It currently supplies permanent and contract staff from its database of over specialised ICT, Finance, and Office Support professionals. Its main business comes from IT contracting/consulting.
74GF Score

Get the complete analysis for ASX:HIT

Intrinsic Value: DCF (Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$1.28
Price
A$1.81
GF Value