3 models fit Extreme Networks Inc. Common Stock and they disagree: 0 of 3 land within 15% of the average.
Two or more of our models back this value.
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Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, Discounted cash flow, and Graham number.
ACCE opinionExtreme Networks Inc. Common Stock (EXTR)
Fair value (3 models)
$18.13
ACCE price target
$25.50
Rating
Overvalued
Horizon
12 months
Fair value published on 21 Oct 2026, 12:04 CEST; previously $18.68 since 16 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 12:04 CEST.
Price used: $21.97 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
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
21.2% above
-17.5% to fair value
ACCE score
65
out of 100
Analysts
88% buy
8 covering
P/E
70.9x
forward 14.5x
1-year return
+3.9%
Dividend yield
0.00%
Extreme Networks Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Extreme Networks sells Ethernet switches, Wi-Fi access points and the cloud management software (ExtremeCloud IQ) that runs them, mostly into enterprise campuses, data centers and hospitality and education venues. The case rests on the software and subscription layer that sits on top of the hardware, which is why gross margin runs at 61.5% even though operating margin is only 6.4%, leaving room for operating leverage if that mix keeps shifting. Revenue growth of 10.3% is a reasonable base, and the forward P/E of 16.2 against a trailing 72.3 says earnings are expected to recover sharply from a depressed base rather than simply compound. The trailing multiple is distorted, so the forward figure is the one to test, along with whether a 54.6% ROE is durable or flattered by a thin equity base. The company is not in any major index, which limits passive demand but also means the stock may be under-covered at this size, worth a deeper look into margin guidance and recurring revenue disclosure.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
moderate
Insider selling without buying
Last 10 disclosed insider transactions show $7.24M in sales and no buys. Insider ownership is only 3.1%, so this is modest but one-directional.
moderate
Elevated leverage
Debt/Equity of 2.20 with EV/EBITDA at 34.3 leaves little room for a slowdown. Net margin of 3.3% against operating margin of 6.4% shows heavy interest or other drag.
moderate
Stock trades above model fair value
The price sits 21.2% above the model fair value of $18.13, while the ACCE price target of $25.50 sits 13.8% below the current price. Sizing should reflect that the two views disagree.
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
Analysts are overwhelmingly positive, with 88% (7 of 8) rating the stock Buy or Strong Buy.
Revenue grew 10.3% over the last year, and latest earnings beat expectations by 18.8%.
The forward P/E of 16.2x sits well below the sector median forward P/E of 29.1x.
Why it could disappoint
The stock trades 21.2% above the model fair value of $18.13, so the consensus models do not support the price.
Debt to equity of 2.20 is high, and net margin of 3.3% leaves little cushion if sales slow.
The price implies cash flow growth of 7.8% a year for five years, against a 5-year average revenue growth of only 4.9%.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 28, 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 EXTR's valuation models land
Price
$21.97
Model fair value
$18.13
Model range
$6.92 to $36.18
Fair value $18.13
Price $21.97
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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+Conviction breakdown and growth / value / quality / momentum scores