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    ZenaTech (ZENA) Valuation Check as New Baton Rouge Defense-Focused AI and Quantum R&D Hub Announced

    Simply Wall St·12/19/2025 15:22:08
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    ZenaTech (ZENA) is back on traders radar after updating plans for its Baton Rouge Zena AI R&D center, a new hub for defense focused AI and quantum driven systems opening in early 2026.

    See our latest analysis for ZenaTech.

    The Baton Rouge update comes after a string of defense focused calls, drone partnership progress and the UK Casado Design acquisition. The stock’s sharp 1 day share price return of 15.4 percent contrasts with a much weaker year to date share price return and a deeply negative 1 year total shareholder return, hinting that momentum may be stabilizing rather than fully reversing.

    If this kind of defense and quantum story has your attention, it might be worth scanning other high growth tech and AI names using Simply Wall St’s high growth tech and AI stocks.

    Yet with revenue surging, losses still deep and the share price barely half of analyst targets, investors face a critical question: is ZenaTech now trading at a discount to its defense ambitions, or is future growth already priced in?

    Price-to-Sales of 21x: Is it justified?

    On a price-to-sales basis, ZenaTech trades around 21 times revenue, a rich valuation given its last close at $3.37 and ongoing heavy losses.

    The price-to-sales multiple compares the company’s market value to its annual revenue, a common yardstick for fast growing, loss making software and emerging defense technology names where earnings are not yet meaningful.

    In ZenaTech’s case, the tension is stark. The company is currently unprofitable, has seen losses deepen over the past five years and is forecast to remain in the red for at least the next three. Yet consensus expects triple digit revenue growth that could justify paying up for future scale. Relative to the US software space, where the average price-to-sales is under 5 times, the market is assigning ZenaTech a premium that bakes in a lot of optimism about its AI, quantum and drone platforms. However, when stacked against an estimated fair price-to-sales ratio closer to 56 times, there is still a sizable gap that bullish investors might see as room for multiple expansion if execution matches expectations.

    Explore the SWS fair ratio for ZenaTech

    Result: Price-to-Sales of 21x (OVERVALUED)

    However, sustained losses and a steep 12 month share price decline could quickly unwind optimism if defense contracts, AI commercialization or drone demand disappoint.

    Find out about the key risks to this ZenaTech narrative.

    Build Your Own ZenaTech Narrative

    If you see the story differently, or want to dig into the numbers yourself, you can build a personalized view of ZenaTech in minutes: Do it your way.

    A great starting point for your ZenaTech research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.

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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.