Software Aktiengesellschaft

WBAG:SOW Stock Report

Market Cap: €2.7b

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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.

Discounted Cash Flow
Simply Wall St
€37.40
Fair Value
0.05% undervalued intrinsic discount
2
Number of Analysts

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?

Key metric: As SOW is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SOW. This is calculated by dividing SOW's market cap by their current revenue.
What is SOW's PS Ratio?
PS Ratio2.7x
Sales€1.00b
Market Cap€2.74b

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 Average5.1x
PRGS Progress Software
3.8x17.2%US$2.8b
688561 Qi An Xin Technology Group
3x14.7%CN¥16.4b
300339 Jiangsu Hoperun Software
10.7x19.4%CN¥35.9b
300454 Sangfor Technologies
3x11.4%CN¥22.2b
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 Sales Ratio vs Industry

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

44 CompaniesPrice / SalesEstimated GrowthMarket Cap
SOW 2.7xIndustry Avg. 2.2xNo. of Companies48PS0246810+
44 CompaniesEstimated GrowthMarket Cap
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
Jan ’26n/a
€29.50
0%
32.2%€39.00€20.00n/a2
Dec ’25n/a
€29.50
0%
32.2%€39.00€20.00n/a2
Nov ’25n/a
€29.50
0%
32.2%€39.00€20.00n/a2
Oct ’25n/a
€29.50
0%
32.2%€39.00€20.00n/a2
Sep ’25n/a
€29.50
0%
32.2%€39.00€20.00n/a2
Aug ’25n/a
€29.50
0%
32.2%€39.00€20.00n/a2
Jul ’25n/a
€29.50
0%
32.2%€39.00€20.00n/a2
Jun ’25n/a
€29.50
0%
32.2%€39.00€20.00n/a2
May ’25n/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
Analyst Price Target
Consensus Narrative from 2 Analysts
€29.72
Fair Value
25.8% overvalued intrinsic discount
2
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/03/14 21:39
End of Day Share Price 2024/02/23 00:00
Earnings2023/12/31
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Software Aktiengesellschaft is covered by 36 analysts. 1 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Knut WollerBaader Helvea Equity Research
Andrew GardinerBarclays
Gerhard OrgonasBerenberg