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TLS

Telos Corporation Common Stock (TLS) fair value

Technology · Software - Infrastructure · NASDAQ · United States
$4.87+6.56%
Market cap $364MNext earnings 2026-11-09Updated Oct 21, 2026
Add earnings to calendarGoogle
Our verdict
Trades 10% above our fair value
Price
$4.87
Model fair valueConfidence: good
$4.42
Model range
$4.32 to $4.50
Fair value $4.42
Price $4.87
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
Full methodology
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
Free accounts get 5 full stock pages a month, including the four answers.
OverviewAsk ACCEValuationQualityAnalystsSmart MoneyCompareNews and Record

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.

AI-assisted·How I use AIWritten Oct 18, 2026
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
  • high
    Margins barely positive
    Operating margin is +0.7% and net margin is -8.1% on a 32.7% revenue increase, so growth has not translated into profit. Earnings YoY is flat at 0.0%.
  • moderate
    Score down sharply in 90 days
    The ACCE score fell 12 points, from 54 to 42, with Momentum at 25 and Value at 37. The deterioration is recent and broad, not confined to one factor.
  • moderate
    Long-run revenue shrinking
    The five-year revenue CAGR is -1.7%, so the recent 32.7% jump follows a longer period of contraction. One strong year does not yet establish a trend.

AI research notes

AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
  • Revenue grew 32.7% year over year in the latest 10-Q, a sharp reversal from a shrinking five-year trend.
  • Free cash flow over the last twelve months came to $29M, and the stock's free cash flow yield stands at 9.4%.
  • Analysts' mean price target of $6.33 sits 37.4% above the share price, and half of covering analysts rate it Buy or Strong Buy.
Why it could disappoint
  • Net margin is negative at -8.1% and return on invested capital is -28.8%, so the company is not yet earning its cost of capital.
  • The latest quarter missed expectations, with earnings per share of -0.14 against -0.08 expected, a 75.0% shortfall.
  • Consensus model fair value of $4.42 sits 10.3% below the share price, and the price implies only 2.1% yearly cash flow growth over five years.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.

Next results

Nov 9, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle

Walk me through this stock

Plain-English pros, cons, and what to watch. Pro feature.

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Valuation

INVESTOR
Where TLS's valuation models land
Price
$4.87
Model fair value
$4.42
Model range
$4.32 to $4.50
Fair value $4.42
Price $4.87
The price is above the whole model range.
Model
Fair value
Upside
Discounted cash flow
P/E comparison
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Quality

INVESTOR
Quality and conviction INVESTOR FEATURE

The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.

  • +A plain reason under every score
  • +Conviction breakdown and growth / value / quality / momentum scores
  • +Score history: how each score moved over time

Analysts

Wall Street consensus

Mixed50% buy · 6 covering analysts
● Strong buy 2● Buy 1● Hold 3● Sell 0● Strong sell 0
Analyst intelligence INVESTOR FEATURE

The full analyst picture: the price-target distribution against the current price, forward consensus estimates, and how ACCE's own models compare.

  • +Price-target low / average / high vs the current price, with implied upside
  • +Forward revenue and EPS consensus by fiscal year
  • +ACCE fair-value models lined up against the Street

Smart Money

PRO

In one line

Trades are only made public after a delay. We show the delay so you know how old the news is.

Company insiders
No trades filed
Last 90 days
Congress
No trades filed
Last 180 days
Average delay
No trades filed
From trade to public filing
Do politicians beat the market? Our backtest →
Smart money tracking PRO FEATURE

Follow the informed money: 13F position changes, insider and Congress trades, and 13D activist filings.

  • +Quarter-over-quarter institutional position changes
  • +Every insider and Congress trade, with how late it was disclosed
  • +Active 13D activist filings and top holders

Compare

Where it sits vs peers

News and Record

Press releases mentioning this company

Recent performance

1 week
+21.4%
1 month
+19.1%
3 months
+8.0%
6 months
+9.9%
YTD
-4.5%
1 year
-34.6%

SEC filings

Recommendation history, last 12 months

DateTypeNewPreviousPrice
21 Oct 2026, 13:04 CESTRatingFairly valuedfirst publication$4.41
17 Oct 2026, 00:00 CESTFair value$4.39$2.32$4.27
15 Oct 2026, 00:00 CESTACCE price target$4.40first publication$4.35
8 Oct 2026, 00:00 CESTFair value$2.32$2.26$4.34
1 Oct 2026, 00:00 CESTFair value$2.26$2.30$4.04
25 Sept 2026, 00:00 CESTFair value$2.30$2.24$4.09
20 Sept 2026, 00:00 CESTFair value$2.24$2.22$4.07
18 Sept 2026, 00:00 CESTFair value$2.22$2.18$4.08
15 Sept 2026, 00:00 CESTFair value$2.18$2.28$3.95
10 Sept 2026, 00:00 CESTFair value$2.28$2.31$4.66

This analysis is not personalised investment advice and does not take your situation, objectives or risk tolerance into account. ACCE Investments is not an authorised investment firm.

Investing in shares carries a risk of losing capital. The value of an investment can go down as well as up.

Valuation horizon: 12 months from the publication date.

Conflicts of interest. ACCE Investments is operated by Adrien Chantreuil, who may hold personal positions in the securities analysed. Positions are declared on each security. ACCE receives no payment from the companies analysed or from any intermediary for this analysis.

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Snapshot

Growth64Value37Quality43Momentum47Total48
Valuation
Trailing P/E
no data
Forward P/E
18.9x
PEG
no data
P/B
3.28x
EV / Revenue
1.4x
Book value/sh
$1.25
Enterprise value
$263M
Profitability
ROE
-14.9%
FCF yield
8.09%
ROIC
-28.8%
Health and risk
Debt / equity
0.08
Dividend yield
0.00%
Beta
0.95

Price

-34.3% · 1Y

Ask anything about TLS

Answered from Telos Corporation Common Stock fundamentals + recent valuations. Every number shows its source and date.

This stock Peer Peer median weaker → stronger
ROEbetter than 0% of peers
low -15%-15%high 62%
Div yieldbetter than 33% of peers
low 0.0%0.0%high 4.1%

Peers

Prices Oct 23, 2026
CompanyPriceFair valuevs fair valueP/EROEQualityScore
TLS Telos Corporation Common Stock$4.87$410% above--14.9%4348
YUBICO.ST Yubico ABkr 126.00kr 51147% above72.8x8.9%7166
3769.T GMO Payment Gateway, Inc.¥8725.00--27.1x21.7%9172
4704.T Trend Micro Incorporated¥7260.00--27.2x30.0%8665
4716.T Oracle Corporation Japan¥10000.00--19.1x-4655
OFSS.NS Oracle Financial Services Software Limited₹9677.00--24.7x49.9%9681
DOCN DigitalOcean Holdings Inc. Common Stock$93.22$40131% above42.4x62.3%7048

Sector report card

Where TLS ranks against its sector peers on each metric.

Computing percentiles…
  • GlobeNewswire•Oct 5, 2026
    Telos Secures $13.5 Million Contract to Continue Support of Air Force Intelligence Community Cyber Operations
  • GlobeNewswire•Oct 1, 2026
    Telos Corporation Wins New Xacta Contract with U.S. Department of Commerce Office of Inspector General
  • GlobeNewswire•Sep 28, 2026
    Telos Corporation Awarded $13.7 Million Contract to Modernize Cyber Risk Management for U.S. Department of Health and Human Services
10 more press releases · full archive on Investor+.INVESTOR
40 filings
September 2026
Sep 21
Form 4Insider transactionPeriod 2026-09-21
View on SEC →
Sep 21
Form 4Insider transactionPeriod 2026-09-18
View on SEC →
Sep 11
Form 4Insider transactionPeriod 2026-09-11
View on SEC →
37 more filings + AI summaries on Investor+.INVESTOR