Praemium Limited

ASX:PPS Stock Report

Market Cap: AU$311.6m

Praemium Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: PPS (A$0.67) is trading above our estimate of fair value (A$0.62)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PPS. This is calculated by dividing PPS's market cap by their current earnings.
What is PPS's PE Ratio?
PE Ratio36.4x
EarningsAU$8.75m
Market CapAU$311.64m

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average70.6x
RDY ReadyTech Holdings
65.6x24.2%AU$345.0m
DUG DUG Technology
49.1x33.5%AU$214.9m
IFM Infomedia
40.2x21.0%AU$505.9m
SYM Symbio Holdings
127.7x44.5%AU$225.7m
PPS Praemium
36.4x22.5%AU$311.6m

Price-To-Earnings vs Peers: PPS is good value based on its Price-To-Earnings Ratio (36.4x) compared to the peer average (70.6x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
IRI Integrated Research
3.9x-20.4%US$70.34m
No more companies available in this PE range
PPS 36.4xIndustry Avg. 63.1xNo. of Companies3PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PPS is good value based on its Price-To-Earnings Ratio (36.4x) compared to the Australian Software industry average (63.1x).

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 Ratio36.4x
Fair PE Ratio40.2x

Price-To-Earnings vs Fair Ratio: PPS is good value based on its Price-To-Earnings Ratio (36.4x) compared to the estimated Fair Price-To-Earnings Ratio (40.2x).

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$0.67
AU$0.73
+9.7%
21.6%AU$0.95AU$0.43n/a7
Nov ’25AU$0.67
AU$0.72
+8.2%
20.9%AU$0.95AU$0.43n/a7
Oct ’25AU$0.58
AU$0.65
+12.4%
23.1%AU$0.85AU$0.43n/a8
Sep ’25AU$0.55
AU$0.65
+19.6%
23.1%AU$0.85AU$0.43n/a8
Aug ’25AU$0.49
AU$0.59
+21.2%
22.7%AU$0.82AU$0.43n/a8
Jul ’25AU$0.50
AU$0.61
+22.6%
22.9%AU$0.86AU$0.43n/a8
Jun ’25AU$0.45
AU$0.61
+36.5%
24.6%AU$0.86AU$0.43n/a7
May ’25AU$0.49
AU$0.61
+24.0%
24.6%AU$0.86AU$0.43n/a7
Apr ’25AU$0.44
AU$0.58
+31.7%
21.7%AU$0.81AU$0.43n/a7
Mar ’25AU$0.40
AU$0.60
+53.0%
19.7%AU$0.81AU$0.43n/a6
Feb ’25AU$0.37
AU$0.57
+53.4%
17.2%AU$0.71AU$0.40n/a6
Jan ’25AU$0.39
AU$0.67
+71.3%
20.3%AU$0.80AU$0.40n/a6
Dec ’24AU$0.42
AU$0.67
+57.2%
20.3%AU$0.80AU$0.40n/a6
Nov ’24AU$0.56
AU$1.00
+81.1%
16.7%AU$1.30AU$0.80AU$0.677
Oct ’24AU$0.59
AU$1.02
+70.7%
16.1%AU$1.30AU$0.80AU$0.587
Sep ’24AU$0.70
AU$1.03
+47.4%
16.6%AU$1.30AU$0.80AU$0.556
Aug ’24AU$0.57
AU$0.99
+71.4%
19.3%AU$1.30AU$0.76AU$0.496
Jul ’24AU$0.68
AU$1.17
+73.7%
9.1%AU$1.30AU$1.04AU$0.504
Jun ’24AU$0.64
AU$1.17
+83.2%
9.1%AU$1.30AU$1.04AU$0.454
May ’24AU$0.67
AU$1.17
+76.3%
9.1%AU$1.30AU$1.04AU$0.494
Apr ’24AU$0.74
AU$1.19
+60.1%
7.1%AU$1.30AU$1.10AU$0.444
Mar ’24AU$0.86
AU$1.04
+21.2%
29.8%AU$1.30AU$0.44AU$0.405
Feb ’24AU$0.77
AU$0.99
+29.1%
29.5%AU$1.30AU$0.44AU$0.375
Jan ’24AU$0.80
AU$1.02
+27.8%
30.3%AU$1.30AU$0.44AU$0.395
Dec ’23AU$0.86
AU$1.02
+18.8%
30.3%AU$1.30AU$0.44AU$0.425
Nov ’23AU$0.83
AU$1.02
+23.1%
30.3%AU$1.30AU$0.44AU$0.565

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

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