Appear makes compact media-processing and IP-transport technology (broadcast contribution/distribution, video processing, media transport over IP) for broadcasters, telcos and service providers. FY2025 revenue grew ~32% to ~NOK 801m at a ~72% gross margin and a ~21% reported EBIT margin; adjusted ROIC is ~20% (the first capitalized-R&D year is reversed per mttssn, so the headline is conservative) with economic profit +NOK ~49m over a 10% WACC, and the balance sheet is net cash ~NOK 0.5bn.
It is a quality grower, but two things cap it: a full valuation (~23x P/E, ~20x EV/adj-EBIT) and a ~NOK 0.5bn idle-cash pile (post-IPO liquidity) whose deployment — into growth, M&A or returns — is the key swing factor, plus a short public history (IPO Nov 2025) and event/customer concentration. Neutral-to-constructive on quality, full on price.
At ~23x P/E and ~20x EV/adj-EBIT a growth premium is warranted, but there is no margin of safety and a large idle-cash balance dilutes returns until deployed.
Base NOK 73 (fair for the growth + quality); bull NOK 90 if growth sustains and the idle cash is deployed accretively; bear NOK 55 on a growth slowdown or a multiple de-rate.
At today’s enterprise value the constant-ROIC reverse-DCF maxes out: even at its sustainable-growth ceiling (~19.3%, limited by ROIC 20% ≈ WACC 10%) it cannot reach the current EV. No-growth value is NOK 39/share (54% of price); the market prices in growth and/or a higher ROIC than booked — richly valued on this lens. Read the sensitivity grid.
| Scenario | 24m target | Impl. g | Upside | Prob. | Driver |
|---|---|---|---|---|---|
| Bull | NOK 90 | ≥19% | +23% | 30% | Growth sustains; idle cash deployed accretively |
| Base | NOK 73 | ≥19% | -0% | 45% | Fair for growth + quality |
| Bear | NOK 55 | +18% | -25% | 25% | Growth slowdown or multiple de-rate |
| Prob-weighted | NOK 74 | — | +1% | 100% | Scenario-weighted expected value |
| WACC \ g | 0% | 3% | 5% | 8% | 10% | 15% |
|---|---|---|---|---|---|---|
| 8.50% | 46 | 49 | 51 | 55 | 57 | 64 |
| 9.25% | 42 | 45 | 46 | 49 | 52 | 57 |
| 10.00% (base) | 39 | 41 | 43 | 45 | 47 | 52 |
| 10.75% | 37 | 39 | 40 | 42 | 43 | 47 |
| 11.50% | 35 | 36 | 38 | 39 | 40 | 44 |
Green = fair value above the current price of NOK 73.20. The reverse-DCF conclusion is dominated by WACC and growth — see the whole surface, not a single fair value.
⤓ Download the full model (.xlsx) — formula-driven sheets; flex the blue input cells and the model cascades in Excel.
+32% FY2025 on media-over-IP demand; order intake the read-through.
ROIC ~20%, net cash — capital-efficient growth.
~NOK 0.5bn idle cash; accretive deployment is the upside lever.
Structural broadcast move to IP supports demand.
Appear is a net-cash, ~20%-ROIC, fast-growing media-tech niche — a clear value creator, but fully valued at ~23x P/E with a large idle-cash overhang. HOLD; base NOK 73.
Own the growth + quality on a pullback; accretive cash deployment is what would re-rate it.
Every adjustment traces to the cited note/page in the source filing — click to open it there. Source reports archived locally.
| Adjustment / figure | Value | Source | Why mttssn treats it this way |
|---|---|---|---|
| Revenue from contracts with customers | 801 | Consolidated statement of comprehensive income / Note 3 | Revenue from contracts with customers FY2025 = 800,943 ('000) vs 605,608 prior year (+32.3%). Note 3 disaggregates by region: AM 399,560, EMEA 373,406, APAC 27,976; and by type: products & licenses ~691,678, support & consulting services 109,265. |
| Gross earnings / gross margin | 579 | APMs - Gross earnings | Revenue 800,943 less raw materials & consumables used 221,670 = gross earnings 579,273; gross margin 72.3% (flat vs FY2024 72.3%). |
| Operating profit (EBIT) | 171 | Consolidated statement of comprehensive income | Operating profit (EBIT) FY2025 = 170,719 ('000) vs 73,147 prior year; EBIT margin 21.3%. Used as the starting point before mttssn normalisation adjustments. |
| Development expenses capitalised (EBITDAC bridge) | -64.727 | APMs - EBITDA and EBITDAC | FY2025 'Development expenses capitalized' = 64,727 ('000) deducted from EBITDA to derive EBITDAC 124,400 (NOK 0 in FY2024 - first year of capitalisation). Reversed by mttssn (expensed), net of 977 amortisation add-back. |
| Capitalised technological development - intangible addition & amortisation | 65.259 | Note 10 Intangible assets | FY2025 capitalised tech dev intangible additions ~66.2 (employee benefit 58.5 + overhead 6.3 + directly attributable 1.4); net book value of capitalised dev costs at 31 Dec 2025 = 65,259; amortisation charge for the year on capitalised dev = 977. R&D (ex-employee) expensed in the year = 3.5. |
| IPO costs expensed | 17.833 | APMs - Underlying operating profit | Cost expensed in relation to the IPO FY2025 = 17,833 ('000) (FY2024 3,821). One-off Euronext Oslo Bors listing costs; added back in normalisation and in the company's underlying-operating-profit APM. |
| Income tax expense | -40.3 | Note 7 Income tax | Income tax expense FY2025 = 40,296 ('000) on profit before tax 169,458 = effective rate 23.8%. Statutory Norwegian rate 22% used for NOPAT per methodology. |
| Profit for the year (net income) | 129 | Consolidated statement of comprehensive income | Profit for the year FY2025 = 129,162 ('000) vs 69,513 prior year; basic & diluted EPS NOK 3.40 (Note 8) on weighted-average 37,971k shares. |
| Total equity | 590 | Consolidated statement of financial position / Note 22 | Total equity at 31 Dec 2025 = 589,541 ('000) (share capital 1,237, share premium 109,232, treasury -19, other reserves 1,426, retained earnings 477,664). All attributable to parent; no NCI. Other reserves 1,426 = cumulative translation differences (treated as AOCI). |
| Interest-bearing debt | 0 | Consolidated statement of financial position | NO borrowings from credit institutions or bonds on the balance sheet. The only liabilities resembling debt are IFRS 16 lease liabilities (next row) and a 16,243 contract liability (deferred revenue, Note 18 - not financial debt). Appear is equity-funded. |
| Lease liabilities (IFRS 16, total) | 62.1 | Note 11 Right-of-use assets and lease liabilities | Non-current lease liabilities 53,465 + current 8,642 = 62,107 ('000) (right-of-use assets 54,142). Office leases only; EXCLUDED from invested capital (asset-light treatment). |
| Cash and cash equivalents | 60.5 | Note 15 Cash and cash equivalents | Cash and cash equivalents at 31 Dec 2025 = 60,490 ('000) (FY2024 96,825). ~16.0 (~2% of revenue) retained as operational cash; ~44.5 treated as excess and stripped from IC. Restricted cash ~7.1 (deposit accounts) per Q1 2026 disclosure. |
| Financial assets at fair value through P&L (money market funds) | 439 | Note 20.1 Financial assets at fair value through profit or loss | Money-market-fund investments at 31 Dec 2025 = 438,608 ('000) (FY2024 133,611); part of 'available liquidity' 499,099. Largely IPO proceeds. Retained in the economic capital base (not stripped) and counted as cash for net-debt. |
| Shares outstanding (net of treasury) | 40.596 | Note 22 Share Capital | Issued ordinary shares 41,217,000 (par NOK 0.03; share capital NOK 1,236,510 post Nov-2025 IPO + greenshoe) less 621,205 treasury shares = 40,595,795 outstanding at 31 Dec 2025. Used with verified close 73.20 NOK for market cap 2,971.6. |
How the mttssn view has evolved — each prior dated note is preserved.