Software Aktiengesellschaft

WBAG:SOW Stock Report

Market Cap: €2.7b

Software Valuation

Is SOW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SOW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SOW (€37.38) is trading below our estimate of fair value (€37.4)

Significantly Below Fair Value: SOW is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for SOW?

Other financial metrics that can be useful for relative valuation.

SOW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3x
Enterprise Value/EBITDA24.5x
PEG Ration/a

Price to Sales Ratio vs Peers

How does SOW's PS Ratio compare to its peers?

The above table shows the PS ratio for SOW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.2x
300454 Sangfor Technologies
3.1x15.7%CN¥22.8b
688561 Qi An Xin Technology Group
3.4x18.3%CN¥21.1b
002439 Venustech Group
5.2x17.3%CN¥24.0b
9749 Fuji Soft
1.3x4.5%JP¥386.3b
SOW Software
2.7x5.2%€2.7b

Price-To-Sales vs Peers: SOW is good value based on its Price-To-Sales Ratio (2.7x) compared to the peer average (3.9x).


Price to Earnings Ratio vs Industry

How does SOW's PE Ratio compare vs other companies in the European Software Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a29.2%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a29.2%
n/an/an/a
No more companies

Price-To-Sales vs Industry: SOW is expensive based on its Price-To-Sales Ratio (2.7x) compared to the European Software industry average (2.2x).


Price to Sales Ratio vs Fair Ratio

What is SOW's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SOW PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.7x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate SOW's Price-To-Sales Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SOW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
€29.50
0%
32.2%€39.00€20.00n/a2
Apr ’25n/a
€29.50
0%
32.2%€39.00€20.00n/a2
Mar ’25€37.38
€29.50
-21.1%
32.2%€39.00€20.00n/a2
Feb ’25€38.76
€29.58
-23.7%
20.4%€39.00€20.00n/a6
Jan ’25€36.06
€28.42
-21.2%
16.2%€32.00€20.00n/a6
Dec ’24€31.76
€29.61
-6.8%
13.9%€32.00€20.00n/a9
Nov ’24€31.94
€29.85
-6.5%
13.3%€32.00€20.00n/a10
Oct ’24€31.62
€29.85
-5.6%
13.3%€32.00€20.00n/a10
Sep ’24€31.60
€29.85
-5.5%
13.3%€32.00€20.00n/a10
Aug ’24€31.26
€29.85
-4.5%
13.3%€32.00€20.00n/a10
Jul ’24€31.88
€30.04
-5.8%
12.5%€33.00€20.00n/a12
Jun ’24€33.06
€30.04
-9.1%
12.5%€33.00€20.00n/a12
May ’24€30.92
€27.46
-11.2%
15.3%€33.00€20.00n/a12
Apr ’24€20.14
€24.69
+22.6%
19.7%€35.00€18.00n/a14
Mar ’24€19.21
€25.19
+31.1%
19.5%€35.00€18.00€37.3814
Feb ’24€21.90
€28.32
+29.3%
15.9%€37.00€21.00€38.7614
Jan ’24€24.18
€28.89
+19.5%
18.4%€38.00€21.00€36.0614
Dec ’23€24.94
€28.86
+15.7%
18.4%€38.00€21.00€31.7614
Nov ’23€22.22
€29.00
+30.5%
19.4%€38.00€21.00€31.9414
Oct ’23€23.58
€32.71
+38.7%
18.0%€43.00€22.00€31.6214
Sep ’23€25.64
€32.71
+27.6%
18.0%€43.00€22.00€31.6014
Aug ’23€26.48
€33.23
+25.5%
17.1%€43.00€22.00€31.2613
Jul ’23€31.24
€37.54
+20.2%
15.9%€48.00€26.00€31.8813
Jun ’23€31.80
€37.54
+18.0%
15.9%€48.00€26.00€33.0613
May ’23€29.64
€37.31
+25.9%
15.9%€48.00€26.00€30.9213

Analyst Forecast: Target price is lower than the current share price.


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