Dropsuite Limited

ASX:DSE Stock Report

Market Cap: AU$274.0m

Dropsuite Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: DSE (A$3.9) is trading above our estimate of fair value (A$2.85)

Significantly Below Fair Value: DSE is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As DSE is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for DSE. This is calculated by dividing DSE's market cap by their current revenue.
What is DSE's PS Ratio?
PS Ratio7.7x
SalesAU$35.46m
Market CapAU$274.01m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for DSE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.6x
RDY ReadyTech Holdings
3.1x10.9%AU$349.8m
PPS Praemium
3.8x9.6%AU$316.4m
DUG DUG Technology
2x12.3%AU$202.5m
COS COSOL
1.5x11.2%AU$154.4m
DSE Dropsuite
7.7x19.3%AU$274.0m

Price-To-Sales vs Peers: DSE is expensive based on its Price-To-Sales Ratio (7.7x) compared to the peer average (2.6x).

Price to Sales Ratio vs Industry

How does DSE's PS Ratio compare vs other companies in the AU Software Industry?

16 CompaniesPrice / SalesEstimated GrowthMarket Cap
ADA Adacel Technologies
0.6x10.4%US$18.36m
MOQ MOQ
0.3xn/aUS$15.57m
DUB Dubber
0.5xn/aUS$12.65m
GTI Gratifii
0.5x32.4%US$9.08m
DSE 7.7xIndustry Avg. 3.1xNo. of Companies19PS02.85.68.411.214+
16 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DSE is expensive based on its Price-To-Sales Ratio (7.7x) compared to the Australian Software industry average (3.1x).

Price to Sales Ratio vs Fair Ratio

What is DSE'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.

DSE PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7.7x
Fair PS Ratio2.6x

Price-To-Sales vs Fair Ratio: DSE is expensive based on its Price-To-Sales Ratio (7.7x) compared to the estimated Fair Price-To-Sales Ratio (2.6x).

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 DSE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$3.90
AU$4.46
+14.4%
6.5%AU$4.80AU$4.09n/a3
Nov ’25AU$4.00
AU$4.46
+11.6%
6.5%AU$4.80AU$4.09n/a3
Oct ’25AU$3.40
AU$4.13
+21.4%
7.1%AU$4.50AU$3.78n/a3
Sep ’25AU$3.27
AU$4.13
+26.2%
7.1%AU$4.50AU$3.78n/a3
Aug ’25AU$3.45
AU$4.15
+20.2%
6.5%AU$4.50AU$3.84n/a3
Jul ’25AU$2.75
AU$3.83
+39.2%
8.3%AU$4.10AU$3.38n/a3
Jun ’25AU$2.74
AU$3.83
+39.7%
8.3%AU$4.10AU$3.38n/a3
May ’25AU$2.60
AU$3.83
+47.4%
8.1%AU$4.10AU$3.40n/a3
Apr ’25AU$3.05
AU$3.83
+25.7%
8.1%AU$4.10AU$3.40n/a3
Mar ’25AU$2.90
AU$3.83
+32.2%
8.1%AU$4.10AU$3.40n/a3
Feb ’25AU$2.90
AU$3.63
+25.3%
7.2%AU$4.00AU$3.40n/a3
Jan ’25AU$2.85
AU$3.53
+24.0%
5.8%AU$3.80AU$3.30n/a3
Dec ’24AU$2.40
AU$3.65
+52.1%
4.1%AU$3.80AU$3.50n/a2
Nov ’24AU$2.35
AU$3.65
+55.3%
4.1%AU$3.80AU$3.50AU$4.002
Oct ’24AU$2.45
AU$3.65
+49.0%
4.1%AU$3.80AU$3.50AU$3.402
Sep ’24AU$2.60
AU$3.65
+40.4%
4.1%AU$3.80AU$3.50AU$3.272
Aug ’24AU$2.55
AU$3.65
+43.1%
4.1%AU$3.80AU$3.50AU$3.452
Apr ’24AU$2.10
AU$3.20
+52.4%
6.3%AU$3.40AU$3.00AU$3.052
Mar ’24AU$2.30
AU$3.20
+39.1%
6.3%AU$3.40AU$3.00AU$2.902
Feb ’24AU$2.10
AU$3.20
+52.4%
6.3%AU$3.40AU$3.00AU$2.902

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

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