FatPipe Networks (FATN) valuation at a glance
FatPipe Networks (FATN) trades below the fair value estimate shown here. At $6.05 versus a $8.80 estimate, that is a 45% upside.
- Price
- $6.05
- Fair value estimate
- $8.80
- Upside
- +45%
- Forward P/E
- 26.9×
- Market cap
- $85M
- P/S (TTM)
- 4.4×
CompaniesFATN
Overview
FATN
FatPipe Networks
TechnologySD-WANSASEInsider-Owned
$6.05+1.7%
Market Cap
$85M
SEC 10-Q (yfinance-validated)
P/E (TTM)
17.3×
via financials
Rev Growth YoY
90.4%
+90.4%SEC filing
Gross Margin
91.0%
SEC filing
FCF Yield
-0.4%
calculated
Upside to FV
+45.5%
vs fair value
Conviction
3/5Real SD-WAN/SASE software — 91% gross margin, +90% revenue and 54.9% insider ownership — but no longer cheap at 4.4× sales after a 4.6× run off the low.
Research Depth
ScreeningDeep ResearchFull Model
Data as of 2026-06-03
Quality Snowflake
Overall 46/100
Value2/5
Future2/3
Past3/4
Health2/4
Dividend0/1
Each axis scores the checks for which data is available (filled = pass, hollow = no data). Computed from the sourced metrics on this page, not a third-party rating.
Thesis
FatPipe sells SD-WAN/SASE networking software. Validated figures show real quality — 91% gross margin, 25.9% net margin, +90% TTM revenue growth and 54.9% insider ownership — but after a run from a $1.31 low to ~$6, it is no longer statistically cheap: 4.4× sales, ~27× forward P/E, and free cash flow was slightly negative on the latest TTM. Phase 1 deep-dive pending.
Bull Case
Quality91% gross margin, 25.9% net margin, +90% TTM revenue growth; 54.9% insider ownership aligns management.
Balance SheetCurrent ratio 3.85 and minimal net debt; analyst mean target $8.80.
Bear Case
ValuationNo longer cheap: 4.4× sales and ~27× forward P/E after a ~4.6× run off the $1.31 low.
Cash FlowTTM free cash flow slightly negative (−$0.35M); growth is not yet self-funding.
Liquidity~14M shares / ~6M float — extreme illiquidity; 2.6% institutional ownership.
Key Metrics
Market Cap
$85M
SEC 10-Q (yfinance-validated)
Enterprise Value
$85M
calculated
Revenue (TTM)
$19M
SEC filing
P/E (TTM)
17.3×
via financials
Forward P/E
26.9×
consensus
P/S (TTM)
4.4×
via financials
P/B
3.4×
via financials
EV/EBITDA
20.4×
calculated
PEG
–
calculated
Revenue Growth
90.4%
SEC filing
Gross Margin
91.0%
SEC filing
Operating Margin
30.2%
SEC filing
Net Margin
25.9%
SEC filing
Free Cash Flow
$-350.0K
SEC filing
FCF Yield
-0.4%
calculated
Debt / Equity
0.2×
SEC filing
Current Ratio
3.9×
SEC filing
Short Interest
1.2%
exchange
Institutional Own.
2.6%
13F
Insider Own.
54.9%
proxy
Shares Out.
14.0M
SEC filing
Float
6.0M
exchange
Valuation
Price vs Fair Value
Bear$6.40
Base$8.80
Bull$12.00
Now $6.05
Bear Case
$6.40
Analyst low 12-month target (3 analysts)
Base Case
$8.80
Analyst mean 12-month target (3 analysts)
Bull Case
$12.00
Analyst high 12-month target (3 analysts)
Cash-Flow Snapshot
FCF (TTM)
-$348K
FCF Yield
-0.4%
Balance Sheet
$493K net debt
Rev CAGR
7%
Free cash flow and balance sheet from the latest filings. A full multi-scenario DCF is built at the deep-research stage; the fair-value range above is the working estimate until then.
Historical Multiples
| Year | P/E | P/S | EV/EBITDA |
|---|---|---|---|
| FY23 | 61.3× | 11.3× | 47.0× |
| FY24 | 40.9× | 10.0× | 27.3× |
| FY25 | 90.7× | 11.0× | 43.7× |
| FY26 | 6.9× | 1.8× | 8.0× |
| TTM · | 16.9× | 4.2× | 20.4× |
Current multiple highlighted vs trailing history.
Peer Comparison
| Ticker | Mkt Cap | P/E | P/S | EV/EBITDA | Rev Growth | Gross Mgn | Net Mgn |
|---|---|---|---|---|---|---|---|
| FATN | $80M | 16.9× | 4.2× | 20.4× | +90.0% | 91.0% | 26.0% |
| EXTR | $4.14B | 263.9× | 3.3× | 44.4× | +11.0% | 61.0% | 1.0% |
| CIEN | $65.60B | 154.0× | 11.8× | 84.0× | +40.0% | 43.0% | 8.0% |
| NTGR | $658M | – | 0.9× | – | -2.0% | 39.0% | -4.0% |
Financials
| Line Item | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Revenue | 17.9 | 16.3 | 19.2 |
| Cost of Revenue | 1.1 | 1.1 | 1.7 |
| Gross Profit | 16.8 | 15.2 | 17.5 |
| Operating Income | 5.6 | 3.5 | 3.6 |
| Net Income | 4.4 | 2.0 | 5.0 |
| Diluted EPS | 0.35 | 0.15 | 0.35 |
| Line Item | FY24 | FY25 | FY26 |
|---|---|---|---|
| Cash & Equivalents | 1.1 | 2.9 | – |
| Total Assets | 21.4 | 28.3 | 34.5 |
| Total Liabilities | 7.4 | 12.4 | 9.3 |
| Shareholders' Equity | 13.9 | 15.9 | 25.2 |
| Line Item | FY24 | FY25 | FY26 |
|---|---|---|---|
| Operating Cash Flow | (0.4) | (0.5) | (0.8) |
| Capital Expenditure | 0.0 | 0.0 | 0.1 |
Figures from FATN's SEC 10-K filed 2026-05-18, normalized from XBRL company facts (us-gaap). USD millions; EPS per share. Annual periods. Source: SEC 10-K filed 2026-05-18 ↗
Catalysts
Q4 FY26
Earnings
Q4 FY2026 earnings
Watch whether 90%+ revenue growth and MRR momentum continue and FCF turns positive.
Risks
| Risk | Category | Severity | Probability | Impact on Thesis |
|---|---|---|---|---|
| Rich valuation after a 4.6× run | Market/Macro | Medium | Medium | 4.4× sales and ~27× forward P/E leave little margin of safety. |
| Extreme illiquidity / low float | Market/Macro | Medium | High | ~6M float; thin trading amplifies both upside and drawdowns. |
| Negative free cash flow | Execution | Low | Medium | Growth not yet self-funding on a TTM basis. |
Technical Snapshot
52-Week Range
$1.31$6.05$10.90
RSI (14)
52
neutral
50-Day MA
$6.20
-2.4%below
200-Day MA
$4.50
+34.4%above
Avg Vol (30d)
0.2M
0%vs average
Support Levels
$4.50$1.31
Resistance Levels
$8.80$10.90
Price path reconstructed from the 52-week range, current price, and 50/200-day moving averages. Connect a live market-data feed for production.
Ownership & Insider Activity
Top Institutional Holders via 13F filings
| Institution | Shares | % Held | Chg QoQ | Filing |
|---|---|---|---|---|
| Grandeur Peak Global Advisors, LLC | 24K | 0.17% | flat | 2026-03-31 |
| Blackrock Inc. | 22K | 0.15% | +49.5% | 2026-03-31 |
| UBS Group AG | 1K | 0.01% | -30.4% | 2026-03-31 |
| Osaic Holdings Inc. | 1K | 0.01% | flat | 2026-03-31 |
| Citigroup Inc. | 1 | 0.00% | +100% | 2026-03-31 |
| Wells Fargo & Company | 10 | 0.00% | flat | 2026-03-31 |
| Royal Bank of Canada | 87 | 0.00% | +16% | 2026-03-31 |
Insider Activity
Insiders own ~54.9%; institutions only ~2.6%. Short interest ~1.2%. Float ~6M shares.
| Name | Title | Action | Shares | Price | Date | Value |
|---|---|---|---|---|---|---|
| Bhaskar Ragula Ph.D. | Director and Beneficial Owner of more than 10% of a Class of Security | Buy | 20K | $1.45 | 2026-03-03 | $29K |
| Datta Sanchaita | Director and Beneficial Owner of more than 10% of a Class of Security | Buy | 4K | $2.17 | 2025-01-15 | $10K |
Insider & large-holder data from SEC Form 4 · SC 13D/G filings. Institutional holdings aggregated from 13F filers.
Peer Comparison
| Ticker | Mkt Cap | P/E | P/S | EV/EBITDA | Rev Growth | Gross Mgn | Net Mgn |
|---|---|---|---|---|---|---|---|
| FATN | $80M | 16.9× | 4.2× | 20.4× | +90.0% | 91.0% | 26.0% |
| EXTR | $4.14B | 263.9× | 3.3× | 44.4× | +11.0% | 61.0% | 1.0% |
| CIEN | $65.60B | 154.0× | 11.8× | 84.0× | +40.0% | 43.0% | 8.0% |
| NTGR | $658M | – | 0.9× | – | -2.0% | 39.0% | -4.0% |
Recognizable sector comparables. Multiples are trailing-twelve-month figures from market and exchange data; lowest multiple in each column highlighted. Loss-making peers show no P/E.
Research Notes
2026-06-03Internal
Quality but no longer cheap
Real SD-WAN/SASE software, insider-aligned (54.9%), 91% gross margin. Validated data corrects earlier figures: revenue +90%, but the stock now trades 4.4× sales after a 4.6× run; FCF slightly negative. Low float is the main caveat.
FatPipe Networks valuation questions
Is FatPipe Networks (FATN) stock undervalued?
Against the fair value estimate shown on this page, FatPipe Networks trades below: $6.05 today versus a $8.80 estimate, about +45%. The methodology and per-scenario sources are set out in the Valuation section. Treat it as research, not advice, and do your own homework.
What is FatPipe Networks's fair value?
The fair value estimate shown for FATN is $8.80. Its valuation scenarios span bear $6.40, base $8.80, bull $12.00. See the Valuation section for the basis of each.
What is FatPipe Networks's forward P/E ratio?
FatPipe Networks (FATN) trades at a forward P/E of 26.9×, and 4.4× trailing sales.
What is FatPipe Networks's market cap?
FatPipe Networks (FATN) has a market capitalization (its market value, often searched as "net worth") of $85M, and an enterprise value of $85M.
What is the bull and bear case for FATN?
Valuation scenarios: bull $12.00, base $8.80, bear $6.40. Each reflects a distinct set of assumptions; the drivers and sources are detailed in the Valuation section above.