Appen Limited

ASX:APX Stock Report

Market Cap: AU$584.0m

Appen Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 APX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: APX (A$2.2) is trading below our estimate of fair value (A$6.67)

Significantly Below Fair Value: APX is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for APX. This is calculated by dividing APX's market cap by their current revenue.
What is APX's PS Ratio?
PS Ratio1.5x
SalesUS$247.92m
Market CapUS$379.74m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for APX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.3x
DTL Data#3
1.5x33.3%AU$1.2b
ATA Atturra
1.4x9.7%AU$332.7m
CNW Cirrus Networks Holdings
0.5xn/aAU$56.7m
KYP Kinatico
1.9x9.6%AU$56.4m
APX Appen
1.5x4.3%AU$584.0m

Price-To-Sales vs Peers: APX is expensive based on its Price-To-Sales Ratio (1.5x) compared to the peer average (1.3x).

Price to Sales Ratio vs Industry

How does APX's PS Ratio compare vs other companies in the AU IT Industry?

2 CompaniesPrice / SalesEstimated GrowthMarket Cap
NNG Nexion Group
0.5xn/aUS$2.70m
CGO CPT Global
0.2xn/aUS$2.32m
No more companies available in this PS range
APX 1.5xIndustry Avg. 1.5xNo. of Companies4PS0246810+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: APX is good value based on its Price-To-Sales Ratio (1.5x) compared to the Global IT industry average (1.5x).

Price to Sales Ratio vs Fair Ratio

What is APX'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.

APX PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.5x
Fair PS Ratio1.8x

Price-To-Sales vs Fair Ratio: APX is good value based on its Price-To-Sales Ratio (1.5x) compared to the estimated Fair Price-To-Sales Ratio (1.8x).

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 APX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$2.20
AU$1.61
-26.8%
52.4%AU$2.50AU$0.50n/a5
Nov ’25AU$1.92
AU$1.45
-24.5%
57.2%AU$2.50AU$0.50n/a5
Oct ’25AU$2.15
AU$0.92
-57.2%
30.3%AU$1.20AU$0.50n/a5
Sep ’25AU$1.00
AU$0.82
-18.3%
40.4%AU$1.20AU$0.38n/a6
Aug ’25AU$0.78
AU$0.58
-25.2%
21.4%AU$0.80AU$0.38n/a6
Jul ’25AU$0.47
AU$0.54
+15.4%
14.7%AU$0.60AU$0.38n/a6
Jun ’25AU$0.56
AU$0.54
-4.2%
14.7%AU$0.60AU$0.38n/a6
May ’25AU$0.62
AU$0.51
-17.5%
15.3%AU$0.60AU$0.38n/a6
Apr ’25AU$0.58
AU$0.51
-12.5%
15.3%AU$0.60AU$0.38n/a6
Mar ’25AU$0.55
AU$0.47
-15.2%
26.7%AU$0.60AU$0.25n/a6
Feb ’25AU$0.30
AU$0.83
+173.0%
66.6%AU$1.61AU$0.25n/a6
Jan ’25AU$0.63
AU$1.14
+80.4%
33.3%AU$1.61AU$0.60n/a8
Dec ’24AU$0.59
AU$1.16
+96.3%
37.4%AU$1.84AU$0.60n/a10
Nov ’24AU$0.90
AU$1.57
+74.8%
16.4%AU$2.10AU$1.02AU$1.9212
Oct ’24AU$1.24
AU$1.58
+27.2%
16.9%AU$2.15AU$1.02AU$2.1512
Sep ’24AU$1.56
AU$1.66
+6.7%
20.4%AU$2.40AU$1.02AU$1.0012
Aug ’24AU$2.27
AU$2.40
+5.8%
22.0%AU$3.30AU$1.35AU$0.7812
Jul ’24AU$2.39
AU$2.40
+0.5%
22.0%AU$3.30AU$1.35AU$0.4712
Jun ’24AU$3.27
AU$2.31
-29.5%
23.8%AU$3.30AU$1.35AU$0.5612
May ’24AU$2.99
AU$2.32
-22.3%
13.6%AU$2.80AU$2.00AU$0.6211
Apr ’24AU$2.82
AU$2.42
-14.1%
18.2%AU$3.49AU$2.00AU$0.5812
Mar ’24AU$2.25
AU$2.47
+9.8%
18.3%AU$3.49AU$2.00AU$0.5512
Feb ’24AU$2.52
AU$3.05
+20.9%
19.8%AU$4.40AU$2.25AU$0.3012
Jan ’24AU$2.49
AU$3.05
+22.3%
19.8%AU$4.40AU$2.25AU$0.6312
Dec ’23AU$2.96
AU$3.16
+6.8%
20.0%AU$4.40AU$2.25AU$0.5912
Nov ’23AU$2.65
AU$3.21
+21.2%
19.2%AU$4.40AU$2.25AU$0.9012

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

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