Update shared on 04 Dec 2025
Fair value Decreased 2.00%Narrative Update on Technology One
The analyst price target for Technology One has been revised slightly lower to approximately A$34.87 from about A$35.58, as analysts factor in a marginally higher discount rate that more than offsets modest upgrades to long term revenue growth and profit margin assumptions, alongside a slightly lower future P/E multiple.
What's in the News
- Technology One declared a special dividend of 10.0 cents per share for the six months ended September 30, 2025, highlighting strong cash generation and balance sheet capacity (company announcement).
- The company increased its final dividend to 20.0 cents per share for the same period, up 15% on the prior corresponding period, signalling confidence in recurring earnings growth (company announcement).
- Technology One was added to the S&P/ASX 50 Index, lifting its profile among domestic institutional investors and index funds (index rebalancing notice).
- The company was also included in the S&P International 700 and S&P Global 1200 benchmarks, broadening its visibility to global equity investors (index rebalancing notice).
- Management reiterated a disciplined acquisition strategy focused on adding IP rich assets in key verticals and regions, supported by strong cash flow and an AI enabled platform (full year results briefing).
Valuation Changes
- Consensus Analyst Price Target has fallen slightly to A$34.87 from A$35.58, reflecting the net impact of model adjustments.
- Discount Rate has risen marginally to 8.02% from 7.99%, modestly increasing the required return applied in valuation models.
- Revenue Growth has risen slightly to 14.35% from 14.27%, indicating a small upgrade to long term top line expectations.
- Net Profit Margin has risen slightly to 25.67% from 25.58%, reflecting modest improvements in assumed operating efficiency.
- Future P/E has fallen slightly to 62.0x from 63.6x, implying a small reduction in the valuation multiple applied to forecast earnings.
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