2 models fit Acacia Research Corporation (Acacia Tech) Common Stock and they agree: 2 of 2 land within 15% of the average.
Two or more of our models back this value.
Near fair value(i)
Valued as a cyclical company: EV/EBITDA comparison, Discounted cash flow, and Graham number.
ACCE opinionAcacia Research Corporation (Acacia Tech) Common Stock (ACTG)
Fair value (2 models)
$4.65
ACCE price target
$4.10
Rating
Fairly valued
Horizon
12 months
Fair value published on 28 Sept 2026, 00:00 CEST; previously $4.75 since 26 Sept 2026, 00:00 CEST.
ACCE price target published on 15 Oct 2026, 00:00 CEST.
Price used: $4.21 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, EV/EBITDA comparison, and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
9.5% below
+10.5% to fair value
ACCE score
50
out of 100
Analysts
100% buy
1 covering
1-year return
+17.9%
Dividend yield
0.00%
Acacia Research Corporation (Acacia Tech) Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Acacia Research (ACTG) runs Acacia Tech, a patent-licensing and intellectual-property business that monetizes its portfolio through licensing and litigation, alongside operating businesses in industrial and energy products that the market tends to value separately. Revenue growth of 123.6% is the headline, but with a 22.2% gross margin and a 7.4% operating margin, the quality of that growth depends on which segment is driving it, and the business mix is what a PM needs to pin down before anything else. The stock carries a 47.4x forward P/E against a trailing P/E that is not meaningful, and return on equity is still negative at -4.2%, so earnings power is recovering rather than proven. The score of 50/100 and the absence of index membership suggest the market has not yet granted the name credibility, which is either the opportunity or the reason to pass. It merits a deeper look focused on how much of the revenue is recurring licensing income versus one-off settlements.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Earnings collapse despite revenue surge
Revenue grew 123.6% year over year, yet earnings fell 97.5%, and net margin is -5.4%. Growth is not converting to profit, which weakens the quality of the top line.
moderate
Negative return on equity
ROE is -4.2%, meaning shareholder equity is being eroded by losses rather than compounding, even with a low 0.19 debt-to-equity ratio.
moderate
Forward multiple far above trailing
Forward P/E of 47.4 sits against a trailing P/E of 0.0, so the stock's valuation rests heavily on earnings recovery that has not yet shown up in reported results.
AI research notes
AI-assisted·How I use AIWritten Oct 20, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 123.6% year over year, well ahead of its 57.1% average annual pace over five years.
Free cash flow over the last twelve months reached $59M, and the stock yields 14.2% on that cash flow.
Analysts' mean price target of $6.00 sits 43.9% above the current share price, and the one covering analyst rates it Buy.
Why it could disappoint
The company still loses money, with a net margin of -5.4% and a return on equity of -4.2%.
The stock trades 9.5% below the model fair value of $4.65, yet the forward P/E of 47.4x looks demanding for a business earning a 2.7% return on invested capital.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 4, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where ACTG's valuation models land
Price
$4.21
Model fair value
$4.65
Model range
$4.16 to $5.24
Fair value $4.65
Price $4.21
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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+Conviction breakdown and growth / value / quality / momentum scores