Eastman Kodak (KODK) is in focus after Hubble Connected unveiled plans for a new line of Kodak licensed smart family products, set to debut at the ABC Kids Expo in Las Vegas.

The licensing news lands after a mixed stretch in the stock, with the share price down 26.37% over the past 30 days but up 26.34% over 90 days and a 49.31% one year total shareholder return, suggesting momentum has been choppy rather than moving in a single direction.

If this kind of brand extension has you thinking more broadly about connected devices, it could be a good moment to look at other opportunities through the 33 robotics and automation stocks.

With KODK trading at $9.69, an intrinsic value estimate suggesting roughly 98% upside, and recent results still showing a loss, investors face a key question: is this genuine value, or is the stock already pricing in future growth?

Preferred Price to Sales of 0.9x: Is it justified?

Kodak's stock is trading on a P/S of 0.9x while the last close sits at $9.69, so the question is whether that sales based valuation holds up against peers.

The P/S ratio compares the stock price to revenue per share and is often used when a company is loss making, as Kodak currently is with a reported net loss of $165.0m on $1,087.0m of revenue. For a business focused on commercial print, advanced materials and chemicals, and brand licensing, sales based metrics can be a useful way for you to compare it with other tech stocks where profits are currently weak or volatile.

Against the broader US Tech industry average of 2.5x, Kodak's 0.9x P/S suggests the market is assigning a lower value to each dollar of its revenue. At the same time, compared with a peer group average of 0.5x, that same 0.9x looks richer, indicating investors are paying a higher price for Kodak's sales than for those peers even though the company is still unprofitable.

Result: Price-to-Sales of 0.9x (ABOUT RIGHT)

However, the story still carries clear risks, including ongoing net losses of $165.0m and a P/S premium to peer stocks that could compress if sentiment cools.

Another View: DCF Points To Very Large Upside

While the current P/S of 0.9x suggests Kodak sits between cheap and expensive relative to different peer groups, the SWS DCF model paints a very different picture. With the share price at $9.69 and a future cash flow value estimate of $641.46, the implied discount is very large. That raises a simple question for you as an investor: is the DCF too optimistic, or is the market too cautious?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Eastman Kodak for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With sentiment clearly mixed so far, it makes sense to move quickly, review the numbers yourself, and weigh both sides of the story. To see how that balance looks in practice, take a closer look at the 1 key reward and 1 important warning sign.

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.