iQSTEL Inc.

IQST

Communication ServicesTelecommunications ServicesNASDAQ

$1.26

Market Cap: $3.72M

iQSTEL Inc. (IQST) Valuation Summary

Updated Apr 23, 2026 22:31

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$11.22 – $248.77	$16.98	+803.1%
Revenue DCF 10Y	$85.05 – $638.67	$116.06	+6073.4%
▸ Trading Multiples
EV/Revenue	$46.23 – $117.51	$40.86	+2073.5%

Valuation History

DCF Analysis

iQSTEL Inc. (IQST) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$116.06

Market Price

$1.26

Upside / Downside

+9111.1%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -0.7% to a target of 10.4% over 5 years, discounted at a WACC of 9.9%, iQSTEL Inc. (IQST) has an intrinsic value of $116.06 per share (range: $85.05 – $638.67).

Key Assumptions

Current Operating Margin

-0.7%

Target Operating Margin

10.4%

WACC

9.9%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

0.1%

Target CapEx/Rev

6.0%

D&A/Revenue

0.1%

Tax Rate

21.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	428	35.1%	1.6%	7	5	0	(3)	11	-9	-8
2027	452	5.6%	3.8%	17	13	0	(6)	2	6	5
2028	588	30.0%	6.0%	35	28	1	(11)	11	7	5
2029	764	30.0%	8.2%	63	50	1	(19)	14	18	13
2030	993	30.0%	10.4%	104	82	1	(31)	18	34	23
2031	1,292	30.0%	10.4%	135	106	1	(47)	23	37	22
2032	1,668	29.1%	10.4%	174	137	2	(71)	29	39	21
2033	2,045	22.6%	10.4%	213	168	2	(99)	29	42	21
2034	2,374	16.1%	10.4%	247	195	3	(129)	26	44	20
2035	2,600	9.5%	10.4%	271	214	3	(156)	18	43	18

Enterprise Value Bridge

Sum of PV(FCFF)139

Terminal Value (Gordon Growth at 3.0%)646

PV of Terminal Value264

Enterprise Value403

(–) Net Debt2

Equity Value401

(÷) Shares Outstanding3

Fair Value per Share$116.06

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.4%	7.4%	10.4%	13.4%	16.4%
7.9%	$-55	$-5	$173	$406	$639
8.9%	$-51	$-5	$140	$326	$512
9.9%	$-48	$-4	$116	$269	$422
10.9%	$-46	$-4	$99	$227	$356
11.9%	$-43	$-4	$85	$195	$306

Current price: $1.26. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 7.8% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

iQSTEL Inc. (IQST) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$16.98

Market Price

$1.26

Upside / Downside

+1247.6%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-0.7%

Target Operating Margin

10.4%

WACC

9.9%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

0.1%

Target CapEx/Rev

6.0%

D&A/Revenue

0.1%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	428	35.1%	1.6%	7	5	0	(6)	11	-11	-11
2027	452	5.6%	3.8%	17	13	0	(11)	2	1	1
2028	588	30.0%	6.0%	35	28	1	(22)	11	-4	-3
2029	764	30.0%	8.2%	63	50	1	(37)	14	-0	-0
2030	962	25.9%	10.4%	100	79	1	(58)	15	7	5

Enterprise Value Bridge

Sum of PV(FCFF)-8

Terminal Value (Gordon Growth at 3.0%)106

PV of Terminal Value69

Enterprise Value61

(–) Net Debt2

Equity Value59

(÷) Shares Outstanding3

Fair Value per Share$16.98

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.4%	7.4%	10.4%	13.4%	16.4%
7.9%	$-26	$-15	$28	$138	$249
8.9%	$-25	$-14	$21	$111	$201
9.9%	$-25	$-14	$17	$93	$168
10.9%	$-24	$-14	$14	$78	$143
11.9%	$-24	$-13	$11	$68	$124

Current price: $1.26. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 7.8% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$40.86

Market Price

$1.26

Upside / Downside

+3143.1%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), iQSTEL Inc. (IQST) has a fair value of $40.86 based on 5 comparable companies in the Telecommunications Services industry.

EV/Revenue Valuation — Telecommunications Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
iQSTEL Inc.IQST	4	0.0x	0.0x
uCloudlink Group Inc.UCL	46	0.3x	0.2x
Dolphin Entertainment, Inc.DLPN	17	0.6x	0.8x
Educational Development CorporationEDUC	12	1.3x	0.3x
Sports Entertainment Gaming Global CorporationSEGG	8	13.6x	—
Pop Culture Group Co., LtdCPOP	5	0.5x	—
Industry Median		0.6x	0.3x
(*) Revenue		317	283
= Enterprise Value		200	86
(-) Net Debt		2	2
Equity Value		198	84
(/) Outstanding shares		3	3
Fair Price		$57	$24

Selected Fair Value (avg of trailing + forward)

$40.86

+3143.1%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$11.22 – $248.77

$16.98

+803.1%

Revenue DCF 10Y

$85.05 – $638.67

$116.06

+6073.4%

▸ Trading Multiples

EV/Revenue

$46.23 – $117.51

$40.86

+2073.5%

DCF Analysis

iQSTEL Inc. (IQST) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$116.06

Market Price

$1.26

Upside / Downside

+9111.1%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-0.7%

Target Operating Margin

10.4%

WACC

9.9%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

0.1%

Target CapEx/Rev

6.0%

D&A/Revenue

0.1%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	428	35.1%	1.6%	7	5	0	(3)	11	-9	-8
2027	452	5.6%	3.8%	17	13	0	(6)	2	6	5
2028	588	30.0%	6.0%	35	28	1	(11)	11	7	5
2029	764	30.0%	8.2%	63	50	1	(19)	14	18	13
2030	993	30.0%	10.4%	104	82	1	(31)	18	34	23
2031	1,292	30.0%	10.4%	135	106	1	(47)	23	37	22
2032	1,668	29.1%	10.4%	174	137	2	(71)	29	39	21
2033	2,045	22.6%	10.4%	213	168	2	(99)	29	42	21
2034	2,374	16.1%	10.4%	247	195	3	(129)	26	44	20
2035	2,600	9.5%	10.4%	271	214	3	(156)	18	43	18

Enterprise Value Bridge

Sum of PV(FCFF)139

Terminal Value (Gordon Growth at 3.0%)646

PV of Terminal Value264

Enterprise Value403

(–) Net Debt2

Equity Value401

(÷) Shares Outstanding3

Fair Value per Share$116.06

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	4.4%	7.4%	10.4%	13.4%	16.4%
7.9%	$-55	$-5	$173	$406	$639
8.9%	$-51	$-5	$140	$326	$512
9.9%	$-48	$-4	$116	$269	$422
10.9%	$-46	$-4	$99	$227	$356
11.9%	$-43	$-4	$85	$195	$306

Current price: $1.26. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 7.8% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$40.86

Market Price

$1.26

Upside / Downside

+3143.1%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), iQSTEL Inc. (IQST) has a fair value of $40.86 based on 5 comparable companies in the Telecommunications Services industry.

EV/Revenue Valuation — Telecommunications Services

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
iQSTEL Inc.IQST	4	0.0x	0.0x
uCloudlink Group Inc.UCL	46	0.3x	0.2x
Dolphin Entertainment, Inc.DLPN	17	0.6x	0.8x
Educational Development CorporationEDUC	12	1.3x	0.3x
Sports Entertainment Gaming Global CorporationSEGG	8	13.6x	—
Pop Culture Group Co., LtdCPOP	5	0.5x	—
Industry Median		0.6x	0.3x
(*) Revenue		317	283
= Enterprise Value		200	86
(-) Net Debt		2	2
Equity Value		198	84
(/) Outstanding shares		3	3
Fair Price		$57	$24

Selected Fair Value (avg of trailing + forward)

$40.86

+3143.1%