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VIT B: Rising Dividend Track Record Will Support Future Share Upside

Digitalization And Cloud Trends Will Transform Vertical Software Markets

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VIT B
AnalystHighTarget
Not Invested
Published 01 Aug 2025
3 viewsusers have viewed this narrative update

Update shared on 03 May 2026

Fair value Increased 2.06%
Previous
03 May
SEK 223.40
AnalystHighTarget's Fair Value
SEK 580.00
61.5% undervalued intrinsic discount
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1Y
-51.3%
7D
-4.8%

Analysts have revised their price target for Vitec Software Group to SEK580 from SEK568.30, reflecting updated assumptions on fair value, discount rate, revenue growth, profit margins and future P/E multiples.

What's in the News

  • The board approved a dividend of SEK 3.68 per share for the 2025 financial year, to be paid in four quarterly installments of SEK 0.92 per share, with a cap of SEK 156,344,798 in total dividends (Key Developments).
  • Quarterly dividend record dates are set for June 25, 2026, September 25, 2026, December 23, 2026, and March 24, 2027, providing a defined schedule for expected cash distributions if you hold shares across these dates (Key Developments).
  • The company proposed that the Annual General Meeting approve a 2% increase in the dividend to SEK 3.68 per share for the 2025 financial year, linked to earnings per share growth (Key Developments).
  • If the proposal is approved, it would represent the 24th consecutive year of dividend increases for Vitec Software Group, reflecting a long-running pattern of distributing cash to shareholders (Key Developments).

Valuation Changes

  • Fair Value: SEK 580.00, compared with the previous SEK 568.30, reflecting an updated view of what the shares may be worth on a fundamental basis.
  • Discount Rate: 7.52% compared with 7.31% previously, indicating a slightly higher required return in the updated model.
  • Revenue Growth: 7.36% compared with 7.74% previously, implying a more conservative SEK revenue growth assumption.
  • Net Profit Margin: 16.59% compared with 17.43% previously, pointing to a modestly lower expected profitability level.
  • Future P/E: 48.57x compared with 45.22x previously, suggesting a higher valuation multiple applied to expected earnings.

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Disclaimer

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