Cirrus Networks Holdings Limited

ASX:CNW Stock Report

Market Cap: AU$56.7m

Cirrus Networks Holdings Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: CNW (A$0.06) is trading below our estimate of fair value (A$0.2)

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

Key Valuation Metric

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

Key metric: As CNW is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CNW. This is calculated by dividing CNW's market cap by their current earnings.
What is CNW's PE Ratio?
PE Ratio32.9x
EarningsAU$1.73m
Market CapAU$56.73m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CNW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average36.2x
KYP Kinatico
69.4x43.0%AU$54.2m
ATA Atturra
34.6x16.9%AU$338.9m
DTL Data#3
27.8x10.9%AU$1.2b
RKN Reckon
13.1x18.3%AU$63.4m
CNW Cirrus Networks Holdings
32.9xn/aAU$56.7m

Price-To-Earnings vs Peers: CNW is good value based on its Price-To-Earnings Ratio (32.9x) compared to the peer average (61.1x).

Price to Earnings Ratio vs Industry

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

19 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CNW 32.9xIndustry Avg. 23.2xNo. of Companies91PE01632486480+
19 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CNW is expensive based on its Price-To-Earnings Ratio (32.9x) compared to the Global IT industry average (22.7x).

Price to Earnings Ratio vs Fair Ratio

What is CNW'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.

CNW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CNW's Price-To-Earnings 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?

Analyst Forecast: Insufficient data to show price forecast.

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