Kingdom Capital Advisors’ latest investor letter put Eastman Kodak (KODK) back in focus, citing improving profitability, balance sheet strength, and Q4 2025 revenue growth of 9% year over year as key drivers of renewed interest.

The latest share price of US$12.09 comes after a 73.96% 30 day share price return and a 55.00% 90 day share price return. The 1 year total shareholder return of 93.13% and 3 year total shareholder return of 230.33% point to strong momentum building around improving fundamentals and the recent investor letter spotlight.

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After such a sharp move, and with Eastman Kodak still carrying a loss of US$155.0 million on revenue of US$1,069.0 million, the key question is whether the stock remains undervalued or whether markets are already pricing in future growth.

Preferred Price-to-Sales of 1.1x: Is it justified?

On a P/S basis, Eastman Kodak looks cheap next to peers, with a 1.1x multiple at a last close of $12.09, while the shares have already had a strong run.

The P/S ratio compares a company’s market value to its revenue and is often used when earnings are negative, as is the case here with a net loss of $155.0 million on revenue of $1,069.0 million. For Kodak, a lower P/S can reflect investor caution around profitability, or it can signal that revenue is being priced conservatively given the current loss making position.

Against direct peers and the wider US Tech group, that 1.1x stands out. Management data shows Kodak trading well below both the peer average P/S of 11.4x and the US Tech industry average of 1.7x, which is a steep gap in how each dollar of sales is being valued.

Result: Price-to-Sales of 1.1x (UNDERVALUED)

However, you still need to weigh risks such as ongoing net losses of $155.0 million and reliance on print and materials demand holding up across key regions.

Another View: What Does The DCF Say?

The P/S ratio points to Eastman Kodak looking inexpensive compared to peers, but the SWS DCF model goes even further. At a share price of $12.09, the stock screens as trading 98.4% below an estimated future cash flow value of $770.20, which presents an unusually wide gap for investors to weigh.

That kind of difference between a simple sales multiple and a detailed cash flow model raises a practical question: are expectations too high in the DCF, or is the market still anchored to Kodak’s past losses rather than its cash generation potential?

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 59 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

Seen enough bullish and cautious signals to be curious? Take a closer look at the figures yourself and move quickly to decide where you stand with 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.