Kainos Group (CHIX:KNOSL) Intrinsic Value: DCF (Earnings Based): £12.59 (As of Sep. 10, 2026)

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CHIX:KNOSL Kainos Group PLC CHIX:KNOSL
94 GF Score
Price £11.87
GF Value £12.43
Valuation Fairly Valued
! 7 Warning Signs
View Full Analysis

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

Kainos Group CHIX:KNOSL -0.92% 94 Intrinsic Value: DCF (Earnings Based) is £12.59 as of Sep. 10, 2026. GuruFocus rates CHIX:KNOSL with a GF Score™ of 94/100 and a GF Value™ of £12.43 (Fairly Valued). The stock has 7 warning signs investors should review. Among 339 Software companies, Kainos Group ranks worse than 65.78% on this metric.

As of today (2026-09-10), Kainos Group's intrinsic value calculated from the Discounted Earnings model is £12.59.

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.

Kainos Group's Predictability Rank is 2.5-Stars.

Margin of Safety (Earnings Based) using Discounted Earnings model for Kainos Group is 5.72%.

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

CHIX:KNOSl' s Price-to-DCF (Earnings Based) Range Over the Past 10 Years
Min: 0.55   Med: 0.62   Max: 1
Current: 0.94

During the past 13 years, the highest Price-to-Intrinsic-Value-DCF (Earnings Based) Ratio of Kainos Group was 1.00. The lowest was 0.55. And the median was 0.62.

CHIX:KNOSl's Price-to-DCF (Earnings Based) is ranked worse than
65.78% of 339 companies
in the Software industry
Industry Median: 0.74 vs CHIX:KNOSl: 0.94

Kainos Group  (CHIX:KNOSl) 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.


Kainos Group Intrinsic Value: DCF (Earnings Based) Related Terms


Kainos Group Intrinsic Value: DCF (Earnings Based) Historical Data

* Premium members only.

The historical data trend for Kainos Group'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.

Kainos Group Intrinsic Value: DCF (Earnings Based) Chart

Kainos Group Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Intrinsic Value: DCF (Earnings Based)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 14.65 14.60 12.01 12.59

Kainos Group Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
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 14.60 0.00 12.01 0.00 12.59

CHIX:KNOSL vs CRM, SHOP, UBER: Intrinsic Value: DCF (Earnings Based) Comparison

For the Software - Application subindustry, Kainos Group'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.


Kainos Group Price-to-DCF (Earnings Based) vs Software Industry

For the Software industry and Technology sector, Kainos Group's Price-to-DCF (Earnings Based) distribution charts can be found below:

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


CHIX:KNOSL
94GF Score
Kainos Group PLC CHIX:KNOSL
Intrinsic Value: DCF (Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Kainos Group 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 4.80%. 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 = 19.70%
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.
=> Kainos Group's average EPS without NRI Growth Rate in the past 10 years was 19.70%, which is between 5% and 20%. => GuruFocus defaults => Growth Rate: 19.70%

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 = £0.411.
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.

Kainos Group'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+0.197)/(1+0.11) = 1.0783783783784
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)]
=0.411*30.6271
=12.59

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(12.59-11.87)/12.59
=5.72 %

* 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 £12.59 mean?
Kainos Group (CHIX:KNOSL) has a Intrinsic Value: DCF (Earnings Based) of £12.59 as of Sep. 10, 2026. Intrinsic Value: DCF (Earnings Based) is the stock value based on a two-stage discounted earnings model. View historical data on Kainos Group and its competitors. According to the industry distribution chart, Kainos Group ranks #223 out of 339 companies in the Software industry, placing it in the top 65.8%.
Is Kainos Group's Intrinsic Value: DCF (Earnings Based) too high?
Kainos Group's current Intrinsic Value: DCF (Earnings Based) is £12.59. Based on the distribution chart, Kainos Group ranks #223 out of 339 companies in the Software industry, which is below the industry midpoint. Overall, Kainos Group has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kainos Group's Intrinsic Value: DCF (Earnings Based) compare to CRM and SHOP?
According to the Software industry distribution chart, Kainos Group ranks #223 out of 339 companies for Intrinsic Value: DCF (Earnings Based). This places Kainos Group in the lower half of its industry. The industry median Intrinsic Value: DCF (Earnings Based) is 0.74. 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 Software company?
The median Intrinsic Value: DCF (Earnings Based) among Software companies is 0.74, based on 339 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 Kainos Group and its competitors. For the Software industry, the median Intrinsic Value: DCF (Earnings Based) is 0.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kainos Group's current Intrinsic Value: DCF (Earnings Based) is £12.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kainos Group stock overvalued right now?
Based on GuruFocus' analysis, Kainos Group (CHIX:KNOSL) is currently considered Fairly Valued. The stock's GF Value™ is £12.43, compared to a current price of £11.87 — trading 4.5% below its estimated fair value. The current Intrinsic Value: DCF (Earnings Based) is £12.59. Kainos Group's overall GF Score™ is 94/100 with 7 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 Kainos Group (CHIX:KNOSL), the current Intrinsic Value: DCF (Earnings Based) is £12.59 as of Sep. 10, 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 Kainos Group (CHIX:KNOSL) Overvalued in 2026?

Based on GuruFocus' analysis, Kainos Group stock appears to be undervalued. The current stock price of £11.87 is trading 4.5% below its estimated GF Value™ of £12.43. GuruFocus considers Kainos Group to be Fairly Valued.

Key valuation signals for CHIX:KNOSL:

  • Intrinsic Value: DCF (Earnings Based): £12.59
  • GF Value™: £12.43 vs. price of £11.87 (4.5% below fair value)
  • GF Score™: 94/100 with 7 warning signs

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


Kainos Group Business Description

Other Exchanges KNOS:UK
Address 4-6 Upper Crescent, Kainos House, Northern Ireland, Belfast, GBR, BT7 1NT
Kainos Group PLC provides information technology services, consulting, and software solutions. It is structured into three divisions namely Digital Services, Workday Services, and Workday Products. Digital Services which derives key revenue, includes full life cycle development and support of digital solutions for government and commercial customers. The Workday Services division specializes in deploying and supporting Workday's Finance, HR, and Planning products. The Workday Products division develops products that complement Workday such as the smart product suite, including Smart Test, Smart Audit, and Smart Shield. Geographically, the company's maximum revenue is generated from the United Kingdom and Ireland and the rest from North America, Central Europe, and the Rest of the world.
94GF Score

Get the complete analysis for CHIX:KNOSL

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

£11.87
Price
£12.43
GF Value