NEXTDC Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: Insufficient data to calculate NXT's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate NXT's fair value for valuation analysis.

Key Valuation Metric

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

Key metric: As NXT is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for NXT. This is calculated by dividing NXT's market cap by their current revenue.
What is NXT's PS Ratio?
PS Ratio	26x
Sales	AU$404.34m
Market Cap	AU$10.60b

NXT 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/Revenue	26.8x
Enterprise Value/EBITDA	62.1x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for NXT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	10.8x
MAQ Macquarie Technology Group	6.2x	5.6%	AU$2.3b
MP1 Megaport	6.3x	10.9%	AU$1.2b
TNE Technology One	19.9x	12.4%	AU$10.1b
WRK Wrkr	10.8x	37.2%	AU$111.9m
NXT NEXTDC	26x	14.9%	AU$10.6b

Price-To-Sales vs Peers: NXT is expensive based on its Price-To-Sales Ratio (26x) compared to the peer average (10.8x).

Price to Sales Ratio vs Industry

How does NXT's PS Ratio compare vs other companies in the AU IT Industry?

2 Companies	Price / Sales	Estimated Growth	Market Cap
NNG Nexion Group	0.5x	n/a	US$2.70m
CGO CPT Global	0.2x	n/a	US$2.09m

No more companies available in this PS range

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: NXT is expensive based on its Price-To-Sales Ratio (26x) compared to the Global IT industry average (1.6x).

Price to Sales Ratio vs Fair Ratio

What is NXT'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.

NXT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	26x
Fair PS Ratio	12.1x

Price-To-Sales vs Fair Ratio: NXT is expensive based on its Price-To-Sales Ratio (26x) compared to the estimated Fair Price-To-Sales Ratio (12.1x).

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 NXT forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	AU$16.41	AU$19.85 +21.0%	11.3%	AU$25.70	AU$14.00	n/a	16
Nov ’25	AU$16.26	AU$19.81 +21.9%	11.3%	AU$25.70	AU$14.00	n/a	16
Oct ’25	AU$17.38	AU$19.77 +13.7%	11.4%	AU$25.70	AU$14.00	n/a	16
Sep ’25	AU$16.95	AU$18.89 +11.4%	19.7%	AU$25.20	AU$6.57	n/a	17
Aug ’25	AU$17.07	AU$18.91 +10.8%	18.6%	AU$21.70	AU$6.57	n/a	17
Jul ’25	AU$17.49	AU$18.65 +6.6%	18.4%	AU$21.70	AU$6.57	n/a	17
Jun ’25	AU$17.79	AU$18.50 +4.0%	18.4%	AU$21.70	AU$6.57	n/a	17
May ’25	AU$16.20	AU$18.37 +13.4%	18.5%	AU$21.70	AU$6.57	n/a	17
Apr ’25	AU$17.79	AU$17.96 +0.9%	20.8%	AU$22.94	AU$6.57	n/a	17
Mar ’25	AU$16.77	AU$17.92 +6.9%	20.6%	AU$22.94	AU$6.57	n/a	17
Feb ’25	AU$13.87	AU$15.64 +12.8%	13.3%	AU$22.01	AU$12.00	n/a	16
Jan ’25	AU$13.73	AU$15.37 +12.0%	11.4%	AU$20.58	AU$12.00	n/a	16
Dec ’24	AU$13.01	AU$15.35 +18.0%	11.4%	AU$20.58	AU$12.00	AU$16.27	16
Nov ’24	AU$11.94	AU$14.76 +23.6%	19.7%	AU$20.58	AU$5.37	AU$16.26	17
Oct ’24	AU$12.39	AU$14.82 +19.6%	19.5%	AU$20.58	AU$5.37	AU$17.38	17
Sep ’24	AU$13.44	AU$14.69 +9.3%	19.9%	AU$20.58	AU$5.37	AU$16.95	17
Aug ’24	AU$13.05	AU$13.60 +4.2%	18.4%	AU$18.00	AU$5.37	AU$17.07	17
Jul ’24	AU$12.58	AU$13.57 +7.9%	18.2%	AU$17.62	AU$5.37	AU$17.49	17
Jun ’24	AU$12.59	AU$13.27 +5.4%	18.7%	AU$17.62	AU$5.37	AU$17.79	16
May ’24	AU$11.45	AU$13.26 +15.8%	19.3%	AU$18.53	AU$5.37	AU$16.20	17
Apr ’24	AU$10.46	AU$12.38 +18.3%	15.1%	AU$17.05	AU$7.55	AU$17.79	16
Mar ’24	AU$10.55	AU$12.45 +18.0%	15.3%	AU$17.05	AU$7.55	AU$16.77	16
Feb ’24	AU$9.79	AU$12.39 +26.6%	16.3%	AU$17.05	AU$7.55	AU$13.87	16
Jan ’24	AU$9.10	AU$12.38 +36.1%	15.6%	AU$16.19	AU$7.55	AU$13.73	16
Dec ’23	AU$9.49	AU$12.38 +30.5%	15.6%	AU$16.19	AU$7.55	AU$13.01	16

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.