We’ve recently updated our valuation analysis.

Appen Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

APX 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/Revenue0.5x
Enterprise Value/EBITDA4x
PEG Ratio0.3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for APX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.1x
ATA Atturra
33.1x20.5%AU$239.2m
DTL Data#3
37.3x13.6%AU$1.1b
SOC SOCO
20.3xn/aAU$36.6m
CNW Cirrus Networks Holdings
9.5x20.8%AU$34.4m
APX Appen
19x63.4%AU$335.8m

Price-To-Earnings vs Peers: APX is good value based on its Price-To-Earnings Ratio (19x) compared to the peer average (25.1x).


Price to Earnings Ratio vs Industry

How does APX's PE Ratio compare vs other companies in the Global IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a28.5%
n/an/an/a

Price-To-Earnings vs Industry: APX is good value based on its Price-To-Earnings Ratio (19x) compared to the Global IT industry average (22.2x)


Price to Earnings Ratio vs Fair Ratio

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

APX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19x
Fair PE Ratio59.8x

Price-To-Earnings vs Fair Ratio: APX is good value based on its Price-To-Earnings Ratio (19x) compared to the estimated Fair Price-To-Earnings Ratio (59.8x).


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$2.72) is trading below our estimate of fair value (A$6.16)

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


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$2.72
AU$3.05
+12.0%
19.8%AU$4.40AU$2.25n/a12
Jan ’24AU$2.49
AU$3.05
+22.3%
19.8%AU$4.40AU$2.25n/a12
Dec ’23AU$2.96
AU$3.16
+6.8%
20.0%AU$4.40AU$2.25n/a12
Nov ’23AU$2.65
AU$3.21
+21.2%
19.2%AU$4.40AU$2.25n/a12
Oct ’23AU$3.12
AU$4.01
+28.5%
15.1%AU$5.35AU$3.00n/a11
Sep ’23AU$3.60
AU$4.23
+17.6%
18.7%AU$5.94AU$3.00n/a11
Aug ’23AU$5.71
AU$7.11
+24.5%
26.2%AU$12.00AU$4.90n/a11
Jul ’23AU$5.78
AU$7.19
+24.4%
26.0%AU$12.00AU$4.90n/a11
Jun ’23AU$6.31
AU$7.61
+20.7%
24.7%AU$12.00AU$4.90n/a11
May ’23AU$6.66
AU$8.42
+26.5%
27.1%AU$13.20AU$5.70n/a12
Apr ’23AU$6.88
AU$8.42
+22.4%
27.1%AU$13.20AU$5.70n/a12
Mar ’23AU$7.54
AU$8.87
+17.6%
34.0%AU$14.80AU$5.70n/a11
Feb ’23AU$10.38
AU$13.46
+29.7%
17.6%AU$17.60AU$9.50AU$2.5211
Jan ’23AU$11.16
AU$13.39
+19.9%
19.9%AU$17.60AU$9.08AU$2.4912
Dec ’22AU$9.81
AU$13.17
+34.3%
19.7%AU$17.60AU$9.08AU$2.9612
Nov ’22AU$11.08
AU$13.37
+20.6%
17.9%AU$17.60AU$9.08AU$2.6512
Oct ’22AU$9.06
AU$13.37
+47.5%
17.9%AU$17.60AU$9.08AU$3.1212
Sep ’22AU$10.53
AU$13.53
+28.5%
17.2%AU$17.60AU$9.08AU$3.6012
Aug ’22AU$11.36
AU$17.90
+57.6%
21.9%AU$24.75AU$12.86AU$5.7111
Jul ’22AU$13.80
AU$18.35
+33.0%
23.3%AU$24.75AU$12.86AU$5.7811
Jun ’22AU$13.00
AU$18.88
+45.2%
21.6%AU$24.75AU$12.86AU$6.3111
May ’22AU$15.66
AU$21.50
+37.3%
15.5%AU$28.00AU$16.00AU$6.6611
Apr ’22AU$16.38
AU$21.41
+30.7%
15.6%AU$28.00AU$16.00AU$6.8811
Mar ’22AU$16.64
AU$21.84
+31.2%
19.1%AU$30.90AU$16.00AU$7.5412
Feb ’22AU$22.04
AU$29.21
+32.5%
7.0%AU$32.60AU$26.00AU$10.3812

Analyst Forecast: Target price is less than 20% higher than the current share price.


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