Praemium Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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$0.48) is trading below our estimate of fair value (A$1)

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


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/Revenue2.5x
Enterprise Value/EBITDA10.9x
PEG Ratio1.2x

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 Average85x
DUG DUG Technology
54.5x42.4%AU$316.6m
SYM Symbio Holdings
127.7x44.5%AU$225.7m
EOL Energy One
132.9x92.7%AU$157.1m
COS COSOL
24.7x23.5%AU$209.4m
PPS Praemium
22.7x18.7%AU$229.0m

Price-To-Earnings vs Peers: PPS is good value based on its Price-To-Earnings Ratio (22.7x) compared to the peer average (85x).


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/a28.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a28.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: PPS is good value based on its Price-To-Earnings Ratio (22.7x) compared to the Australian Software industry average (60.3x).


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 Ratio22.7x
Fair PE Ratio38.3x

Price-To-Earnings vs Fair Ratio: PPS is good value based on its Price-To-Earnings Ratio (22.7x) compared to the estimated Fair Price-To-Earnings Ratio (38.3x).


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$0.47
AU$0.60
+25.3%
22.6%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$0.80n/a7
Oct ’24AU$0.59
AU$1.02
+70.7%
16.1%AU$1.30AU$0.80n/a7
Sep ’24AU$0.70
AU$1.03
+47.4%
16.6%AU$1.30AU$0.80n/a6
Aug ’24AU$0.57
AU$0.99
+71.4%
19.3%AU$1.30AU$0.76n/a6
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
Oct ’23AU$0.67
AU$1.01
+51.0%
29.9%AU$1.30AU$0.44AU$0.595
Sep ’23AU$0.69
AU$1.01
+46.7%
29.9%AU$1.30AU$0.44AU$0.705
Aug ’23AU$0.63
AU$1.06
+67.9%
14.3%AU$1.30AU$0.90AU$0.574
Jul ’23AU$0.57
AU$1.27
+121.9%
17.6%AU$1.50AU$0.90AU$0.684

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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