Megaport Limited

ASX:MP1 Stock Report

Market Cap: AU$1.2b

Megaport Valuation

Is MP1 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 MP1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MP1 (A$7.57) is trading below our estimate of fair value (A$12.88)

Significantly Below Fair Value: MP1 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MP1?

Key metric: As MP1 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MP1. This is calculated by dividing MP1's market cap by their current earnings.
What is MP1's PE Ratio?
PE Ratio126.2x
EarningsAU$9.61m
Market CapAU$1.21b

Price to Earnings Ratio vs Peers

How does MP1's PE Ratio compare to its peers?

The above table shows the PE ratio for MP1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average45.8x
MAQ Macquarie Technology Group
67.7x1.5%AU$2.2b
DTL Data#3
28.2x10.9%AU$1.2b
ATA Atturra
34x16.9%AU$332.7m
HSN Hansen Technologies
53.1x22.2%AU$1.1b
MP1 Megaport
126.2x30.6%AU$1.2b

Price-To-Earnings vs Peers: MP1 is expensive based on its Price-To-Earnings Ratio (126.2x) compared to the peer average (45.8x).

Price to Earnings Ratio vs Industry

How does MP1's PE Ratio compare vs other companies in the Global IT Industry?

19 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MP1 126.2xIndustry Avg. 23.1xNo. of Companies93PE01632486480+
19 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MP1 is expensive based on its Price-To-Earnings Ratio (126.2x) compared to the Global IT industry average (23.1x).

Price to Earnings Ratio vs Fair Ratio

What is MP1'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.

MP1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio126.2x
Fair PE Ratio51.8x

Price-To-Earnings vs Fair Ratio: MP1 is expensive based on its Price-To-Earnings Ratio (126.2x) compared to the estimated Fair Price-To-Earnings Ratio (51.8x).

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 MP1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$7.57
AU$11.03
+45.7%
17.1%AU$16.05AU$8.00n/a15
Nov ’25AU$6.81
AU$11.96
+75.6%
17.2%AU$16.05AU$8.00n/a15
Oct ’25AU$7.54
AU$12.21
+61.9%
16.7%AU$16.05AU$8.00n/a16
Sep ’25AU$8.54
AU$12.52
+46.5%
14.4%AU$16.05AU$10.00n/a16
Aug ’25AU$11.22
AU$15.11
+34.7%
10.6%AU$18.30AU$12.50n/a16
Jul ’25AU$10.95
AU$15.17
+38.6%
10.8%AU$18.30AU$12.50n/a15
Jun ’25AU$13.56
AU$15.33
+13.1%
10.5%AU$18.30AU$12.50n/a15
May ’25AU$13.23
AU$15.32
+15.8%
10.3%AU$18.30AU$12.50n/a15
Apr ’25AU$14.99
AU$15.19
+1.3%
12.0%AU$19.04AU$11.50n/a15
Mar ’25AU$14.51
AU$14.62
+0.7%
11.8%AU$19.04AU$11.50n/a15
Feb ’25AU$12.48
AU$14.21
+13.8%
12.0%AU$18.41AU$11.50n/a15
Jan ’25AU$9.20
AU$13.18
+43.3%
18.2%AU$18.56AU$10.00n/a14
Dec ’24AU$9.59
AU$13.18
+37.5%
18.2%AU$18.56AU$10.00n/a14
Nov ’24AU$9.64
AU$13.20
+37.0%
18.2%AU$18.56AU$10.00AU$6.8114
Oct ’24AU$11.77
AU$13.63
+15.8%
19.8%AU$18.00AU$8.00AU$7.5414
Sep ’24AU$12.26
AU$13.52
+10.3%
20.5%AU$18.00AU$8.00AU$8.5414
Aug ’24AU$10.40
AU$11.39
+9.5%
18.9%AU$16.76AU$6.90AU$11.2214
Jul ’24AU$7.22
AU$8.47
+17.3%
35.7%AU$16.32AU$4.80AU$10.9514
Jun ’24AU$7.05
AU$8.35
+18.5%
37.1%AU$16.32AU$4.80AU$13.5614
May ’24AU$5.55
AU$8.16
+47.0%
39.0%AU$16.32AU$4.80AU$13.2314
Apr ’24AU$4.12
AU$8.44
+104.8%
38.9%AU$15.83AU$5.00AU$14.9914
Mar ’24AU$5.61
AU$8.58
+52.9%
35.5%AU$15.83AU$5.20AU$14.5115
Feb ’24AU$5.58
AU$8.89
+59.3%
37.7%AU$16.53AU$5.20AU$12.4815
Jan ’24AU$6.31
AU$10.29
+63.0%
35.7%AU$19.37AU$6.21AU$9.2015
Dec ’23AU$6.89
AU$10.29
+49.3%
35.7%AU$19.37AU$6.21AU$9.5915
Nov ’23AU$6.44
AU$10.29
+59.7%
35.7%AU$19.37AU$6.21AU$9.6415

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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