Risk factor
Very high price volatility
Profitability factor
Greatly overvalued vs peers
About
Etherstack plc, a wireless technology company, engages in licensing mission critical radio technologies to equipment manufacturers and network operators Australia and internationally. Its technology enables push-to-talk (PTT) communications; and advanced digital land mobile radio (LMR), and cellular and satellite networks. The company offers a range of cryptographic solutions, including P25 Security Suite unites AES/DES P25 encryption engine with P25 key fill device (KFD) support for complete P25 subscriber encryption; P25 key management facility; P25 security dongles; and FIPS 140-2 Cryptographic Module, a single-board security device that implements APCO P25 encryption, decryption, and key management and storage services in conformance with FIPS140-2 standards. It also provides defense waveforms, such as technology licensing and transfer, and specialist services; waveform heritage; waveform test and development environment; outsource your risks; and reconfiguration and framework architecture standards. In addition, the company offers LMR network building blocks; APCO P25, dPMR, DMR, MPT1327, and TETRA wireless communications protocol stacks; and tactical and satellite solutions comprising P25 tactical repeaters and IVX PTT IP radio. It serves public safety, defense, utilities, transportation, and resource sectors. The company was formerly known as MM&S (5698) plc and changed its name to Etherstack plc in May 2012. Etherstack plc was incorporated in 2012 and is based in Chippendale, Australia.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is overpriced on P/E, 'expensive' on EV/EB