Iress Limited

ASX:IRE Stock Report

Market Cap: AU$1.7b

Iress Valuation

Is IRE 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-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 IRE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IRE (A$9.48) is trading below our estimate of fair value (A$17.1)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for IRE. This is calculated by dividing IRE's market cap by their current earnings.
What is IRE's PE Ratio?
PE Ratio87.3x
EarningsAU$19.59m
Market CapAU$1.71b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for IRE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average63.6x
OCL Objective
51.5x6.3%AU$1.6b
HSN Hansen Technologies
52.8x22.2%AU$1.1b
BVS Bravura Solutions
75.9x7.4%AU$665.7m
RUL RPMGlobal Holdings
74.5x22.6%AU$644.5m
IRE Iress
87.3x29.6%AU$1.7b

Price-To-Earnings vs Peers: IRE is expensive based on its Price-To-Earnings Ratio (87.3x) compared to the peer average (63.6x).

Price to Earnings Ratio vs Industry

How does IRE's PE Ratio compare vs other companies in the AU Software Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
IRI Integrated Research
4x-20.4%US$69.27m
No more companies available in this PE range
IRE 87.3xIndustry Avg. 63.8xNo. of Companies3PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IRE is expensive based on its Price-To-Earnings Ratio (87.3x) compared to the Australian Software industry average (65.3x).

Price to Earnings Ratio vs Fair Ratio

What is IRE'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.

IRE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio87.3x
Fair PE Ratio54.4x

Price-To-Earnings vs Fair Ratio: IRE is expensive based on its Price-To-Earnings Ratio (87.3x) compared to the estimated Fair Price-To-Earnings Ratio (54.4x).

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 IRE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$9.48
AU$10.47
+10.5%
8.5%AU$12.00AU$9.25n/a9
Nov ’25AU$9.87
AU$10.47
+6.1%
8.5%AU$12.00AU$9.25n/a9
Oct ’25AU$9.99
AU$10.24
+2.6%
10.6%AU$12.00AU$8.20n/a10
Sep ’25AU$9.68
AU$10.24
+5.8%
10.6%AU$12.00AU$8.20n/a10
Aug ’25AU$10.55
AU$9.87
-6.4%
10.7%AU$11.31AU$8.20n/a10
Jul ’25AU$7.94
AU$9.17
+15.5%
8.1%AU$10.80AU$8.20n/a10
Jun ’25AU$8.01
AU$9.17
+14.4%
8.1%AU$10.80AU$8.20n/a10
May ’25AU$8.46
AU$9.03
+6.7%
8.4%AU$10.80AU$8.20n/a10
Apr ’25AU$8.29
AU$9.03
+8.9%
8.4%AU$10.80AU$8.20n/a10
Mar ’25AU$7.94
AU$8.83
+11.2%
9.0%AU$10.80AU$8.00n/a10
Feb ’25AU$8.14
AU$8.88
+9.1%
11.2%AU$11.40AU$7.70n/a10
Jan ’25AU$8.15
AU$8.80
+8.0%
11.7%AU$11.40AU$7.70n/a10
Dec ’24AU$7.36
AU$8.90
+20.9%
12.7%AU$11.40AU$7.70n/a8
Nov ’24AU$5.06
AU$8.30
+64.1%
20.2%AU$11.40AU$5.68AU$9.879
Oct ’24AU$5.82
AU$8.31
+42.8%
20.4%AU$11.50AU$5.68AU$9.999
Sep ’24AU$6.44
AU$8.31
+29.1%
20.4%AU$11.50AU$5.68AU$9.689
Aug ’24AU$10.45
AU$10.84
+3.7%
13.1%AU$13.50AU$9.26AU$10.559
Jul ’24AU$10.25
AU$10.84
+5.7%
13.1%AU$13.50AU$9.26AU$7.949
Jun ’24AU$10.42
AU$10.84
+4.0%
13.1%AU$13.50AU$9.26AU$8.019
May ’24AU$10.28
AU$10.94
+6.4%
13.5%AU$13.50AU$9.26AU$8.468
Apr ’24AU$9.92
AU$10.87
+9.6%
16.1%AU$14.00AU$9.20AU$8.298
Mar ’24AU$9.23
AU$10.87
+17.8%
16.1%AU$14.00AU$9.20AU$7.948
Feb ’24AU$9.56
AU$11.94
+24.9%
11.0%AU$13.80AU$10.05AU$8.148
Jan ’24AU$9.55
AU$11.89
+24.5%
11.4%AU$14.00AU$10.05AU$8.159
Dec ’23AU$9.64
AU$11.89
+23.4%
11.4%AU$14.00AU$10.05AU$7.369
Nov ’23AU$10.23
AU$12.12
+18.5%
10.4%AU$14.00AU$10.56AU$5.068

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

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