2 models fit Telos Corporation Common Stock and they agree: 2 of 2 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Near fair value(i)Bronze50
Valued as a cyclical company: P/E comparison and Discounted cash flow.
ACCE opinionTelos Corporation Common Stock (TLS)
Fair value (2 models)
$4.42
ACCE price target
$4.40
Rating
Fairly valued
Horizon
12 months
Fair value published on 17 Oct 2026, 00:00 CEST; previously $2.32 since 8 Oct 2026, 00:00 CEST.
ACCE price target published on 15 Oct 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 13:04 CEST.
Price used: $4.87 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow and P/E 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
10.3% above
-9.3% to fair value
ACCE score
48
out of 100
Analysts
50% buy
6 covering
1-year return
-34.6%
Dividend yield
0.00%
Telos Corporation Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Telos Corporation sells cybersecurity and identity software, including its Xacta compliance platform and Ghost Logic and Telos ID authentication products, mostly to U.S. federal agencies and defense contractors. Revenue is growing 32.7% a year, and gross margin of 42.1% points to a product mix with real software content, but operating margin is only 0.7% and return on equity is -14.9%, so the growth has not yet reached the bottom line. The company is small at a $319M market capitalization, carries no index memberships, and reports a PE of zero, meaning earnings are not yet meaningful enough to anchor a valuation. The thesis rests on whether federal cybersecurity spending and compliance demand keep feeding that top-line growth while operating leverage pushes margins up from near break-even. With a score of 46/100, the name is a candidate for a deeper look only if the next few quarters show operating margin expanding with growth intact.