An Intrinsic Calculation For TietoEVRY Oyj (HEL:TIETO) Suggests It's 48% Undervalued
Dec 07
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Finnish (OMX) IT Industry Analysis
UpdatedDec 30, 2024
DataAggregated Company Financials
Companies7
- 7D1.9%
- 3M-4.5%
- 1Y-16.2%
- YTD-15.9%
Over the last 7 days, the IT industry has risen 1.9%, driven by gains from TietoEVRY Oyj of 2.1%. In the past year, the industry is down 16%. Looking forward, earnings are forecast to grow by 13% annually.
Industry Valuation and Performance
Has the Finnish IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Dec 2024 | €2.7b | €3.5b | €190.9m | 16.4x | 14.2x | 0.8x |
| Thu, 28 Nov 2024 | €2.7b | €3.5b | €190.9m | 15.9x | 14x | 0.8x |
| Sat, 26 Oct 2024 | €2.8b | €3.5b | €191.0m | 15.8x | 14.5x | 0.8x |
| Mon, 23 Sep 2024 | €2.8b | €3.5b | €194.5m | 16.5x | 14.2x | 0.8x |
| Wed, 21 Aug 2024 | €2.9b | €3.5b | €193.5m | 16.8x | 14.9x | 0.8x |
| Fri, 19 Jul 2024 | €2.9b | €3.5b | €190.6m | 14x | 15.1x | 0.8x |
| Sun, 16 Jun 2024 | €2.8b | €3.5b | €190.3m | 13.9x | 14.7x | 0.8x |
| Tue, 14 May 2024 | €2.9b | €3.5b | €190.3m | 14.4x | 15.4x | 0.8x |
| Thu, 11 Apr 2024 | €3.0b | €3.5b | €201.6m | 14.6x | 14.7x | 0.8x |
| Sat, 09 Mar 2024 | €3.2b | €3.5b | €201.6m | 14.6x | 15.8x | 0.9x |
| Mon, 05 Feb 2024 | €3.3b | €3.5b | €217.0m | 16.9x | 15.4x | 0.9x |
| Wed, 03 Jan 2024 | €3.3b | €3.5b | €217.0m | 17.5x | 15.2x | 0.9x |
| Fri, 01 Dec 2023 | €3.2b | €3.5b | €217.0m | 16.6x | 14.6x | 0.9x |
| Sun, 29 Oct 2023 | €3.0b | €3.5b | €217.4m | 15.3x | 14x | 0.9x |
| Tue, 26 Sep 2023 | €3.2b | €3.6b | €232.7m | 17.4x | 13.9x | 0.9x |
| Thu, 24 Aug 2023 | €3.4b | €3.6b | €232.6m | 19.1x | 14.6x | 1x |
| Sat, 22 Jul 2023 | €3.5b | €3.5b | €231.4m | 24.8x | 15x | 1x |
| Mon, 19 Jun 2023 | €4.1b | €3.6b | €229.0m | 31.6x | 18.1x | 1.2x |
| Wed, 17 May 2023 | €4.1b | €3.6b | €229.0m | 29.2x | 17.8x | 1.1x |
| Fri, 14 Apr 2023 | €4.5b | €3.5b | €211.1m | 32.5x | 21.2x | 1.3x |
| Sun, 12 Mar 2023 | €4.4b | €3.5b | €211.1m | 34.4x | 20.7x | 1.3x |
| Tue, 07 Feb 2023 | €4.3b | €3.4b | €226.3m | 20.9x | 18.9x | 1.3x |
| Thu, 05 Jan 2023 | €4.1b | €3.4b | €226.3m | 21.1x | 18.2x | 1.2x |
| Sat, 03 Dec 2022 | €4.1b | €3.4b | €226.3m | 19.7x | 17.9x | 1.2x |
| Mon, 31 Oct 2022 | €3.7b | €3.4b | €226.3m | 18.9x | 16.2x | 1.1x |
| Wed, 28 Sep 2022 | €3.5b | €3.3b | €220.2m | 17.7x | 15.8x | 1x |
| Fri, 26 Aug 2022 | €4.0b | €3.3b | €220.2m | 20.1x | 18x | 1.2x |
| Sun, 24 Jul 2022 | €4.0b | €3.3b | €217.2m | 22.9x | 18.2x | 1.2x |
| Tue, 21 Jun 2022 | €3.6b | €3.3b | €312.9m | 21.9x | 11.5x | 1.1x |
| Thu, 19 May 2022 | €3.6b | €3.3b | €312.9m | 19.3x | 11.5x | 1.1x |
| Sat, 16 Apr 2022 | €3.6b | €3.3b | €317.0m | 19.9x | 11.4x | 1.1x |
| Mon, 14 Mar 2022 | €3.6b | €3.3b | €317.0m | 17.9x | 11.2x | 1.1x |
| Wed, 09 Feb 2022 | €3.9b | €3.2b | €277.8m | 48.7x | 14x | 1.2x |
| Fri, 07 Jan 2022 | €4.1b | €3.2b | €277.8m | 50.8x | 14.8x | 1.3x |
Price to Earnings Ratio
14.8x
Current Industry PE
- Investors are relatively neutral on the Finnish IT industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 15.4x.
- The 3-year average PS ratio of 1.0x is higher than the industry's current PS ratio of 0.78x.
Past Earnings Growth
- The earnings for companies in the IT industry have declined 12% per year over the last three years.
- Meanwhile revenues for these companies have grown 2.9% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Finnish Tech industry?
| FI Market | 1.64% | |
| Tech | 1.26% | |
| IT | 1.93% | |
| IT Consulting | 1.93% | |
| Internet Services and Infrastructure | 0% | |
| Data Processing Services | 0% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry, which is trading close to its 3-year average PE ratio of 15.4x.
- Analysts are expecting annual earnings growth of 13.1%, which is higher than its past year's earnings growth of 0.1% per year.
- Investors are most pessimistic about the IT Consulting industry, which is trading close to its 3-year average of 15.4x.
Forecasted Growth
- Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 13% over the next 5 years.
- This is better than its past earnings growth rate of 0.1% per year.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 13% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| TIETO TietoEVRY Oyj | €17.02 | 1.6% +€30.8m | -21.0% | PE12.6x | |
| NETUM Netum Group Oyj | €2.56 | 6.7% +€2.0m | -2.3% | PS0.8x | |
| DIGIA Digia Oyj | €6.66 | 0.9% +€1.6m | 23.3% | PE16.4x | |
| NIXU Nixu Oyj | €13.35 | 1.5% +€1.4m | 108.6% | PS1.5x | |
| DWF Digital Workforce Services Oyj | €4.00 | 2.6% +€1.1m | 32.5% | PS1.7x |