We’ve recently updated our valuation analysis.

Praemium Valuation

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

[object Object] Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

PPS 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/Revenue6x
Enterprise Value/EBITDA25.2x
PEG Ratio3.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PPS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average42.8x
IFM Infomedia
50.6x33.9%AU$416.9m
RDY ReadyTech Holdings
51.6x25.6%AU$453.9m
HSN Hansen Technologies
24.2x5.2%AU$1.0b
SYM Symbio Holdings
44.8x31.6%AU$258.7m
PPS Praemium
120.2x31.2%AU$447.7m

Price-To-Earnings vs Peers: PPS is expensive based on its Price-To-Earnings Ratio (120.2x) compared to the peer average (42.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a32.7%
n/an/an/a

Price-To-Earnings vs Industry: PPS is expensive based on its Price-To-Earnings Ratio (120.2x) compared to the Australian Software industry average (55.5x)


Price to Earnings Ratio vs Fair Ratio

What is PPS'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.

PPS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio120.2x
Fair PE Ratio39.8x

Price-To-Earnings vs Fair Ratio: PPS is expensive based on its Price-To-Earnings Ratio (120.2x) compared to the estimated Fair Price-To-Earnings Ratio (39.8x).


Share Price vs Fair Value

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

Below Fair Value: PPS (A$0.88) is trading below our estimate of fair value (A$1.41)

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


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 PPS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$0.88
AU$1.02
+16.1%
30.3%AU$1.30AU$0.44n/a5
Nov ’23AU$0.83
AU$1.02
+23.1%
30.3%AU$1.30AU$0.44n/a5
Oct ’23AU$0.67
AU$1.01
+51.0%
29.9%AU$1.30AU$0.44n/a5
Sep ’23AU$0.69
AU$1.01
+46.7%
29.9%AU$1.30AU$0.44n/a5
Aug ’23AU$0.63
AU$1.03
+64.1%
11.0%AU$1.21AU$0.90n/a4
Jul ’23AU$0.57
AU$1.27
+121.9%
17.6%AU$1.50AU$0.90n/a4
Jun ’23AU$0.64
AU$1.32
+107.1%
10.9%AU$1.50AU$1.10n/a4
May ’23AU$0.65
AU$1.32
+103.1%
9.8%AU$1.50AU$1.10n/a5
Apr ’23AU$0.70
AU$1.41
+101.1%
5.8%AU$1.50AU$1.30n/a5
Mar ’23AU$0.82
AU$1.49
+81.5%
8.2%AU$1.70AU$1.34n/a5
Feb ’23AU$1.28
AU$1.64
+28.0%
11.7%AU$1.85AU$1.34n/a5
Jan ’23AU$1.47
AU$1.64
+11.4%
11.7%AU$1.85AU$1.34n/a5
Dec ’22AU$1.45
AU$1.63
+13.1%
11.4%AU$1.83AU$1.34AU$0.865
Nov ’22AU$1.25
AU$1.43
+15.2%
7.0%AU$1.60AU$1.34AU$0.835
Oct ’22AU$1.07
AU$1.39
+30.9%
4.9%AU$1.50AU$1.33AU$0.675
Sep ’22AU$1.19
AU$1.33
+12.2%
11.7%AU$1.50AU$1.01AU$0.696
Aug ’22AU$1.13
AU$1.11
-1.6%
31.0%AU$1.40AU$0.48AU$0.635
Jul ’22AU$1.08
AU$1.02
-5.8%
29.8%AU$1.35AU$0.48AU$0.575
Jun ’22AU$0.96
AU$0.89
-7.2%
23.4%AU$1.01AU$0.48AU$0.645
May ’22AU$0.78
AU$0.89
+15.0%
23.4%AU$1.01AU$0.48AU$0.655
Apr ’22AU$0.66
AU$0.89
+36.0%
23.4%AU$1.01AU$0.48AU$0.705
Mar ’22AU$0.70
AU$0.89
+27.3%
23.4%AU$1.01AU$0.48AU$0.825
Feb ’22AU$0.78
AU$0.79
+2.1%
21.7%AU$0.98AU$0.48AU$1.285
Jan ’22AU$0.66
AU$0.75
+12.9%
19.2%AU$0.90AU$0.48AU$1.475
Dec ’21AU$0.70
AU$0.75
+6.4%
19.2%AU$0.90AU$0.48AU$1.455

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


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