Prophecy International Holdings Valuation

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

Below Fair Value: PRO (A$0.51) is trading above our estimate of fair value (A$0)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for PRO. This is calculated by dividing PRO's market cap by their current revenue.
What is PRO's PS Ratio?
PS Ratio	1.6x
Sales	AU$23.19m
Market Cap	AU$37.18m

PRO 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	1.1x
Enterprise Value/EBITDA	-6.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for PRO 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	4.6x
AR9 archTIS	2.2x	n/a	AU$21.2m
EXT Excite Technology Services	2.2x	n/a	AU$17.6m
ROC RocketBoots	12.8x	n/a	AU$9.5m
TNT Tesserent	1.3x	14.0%	AU$176.0m
PRO Prophecy International Holdings	1.6x	n/a	AU$37.2m

Price-To-Sales vs Peers: PRO is good value based on its Price-To-Sales Ratio (1.6x) compared to the peer average (5.7x).

Price to Sales Ratio vs Industry

How does PRO's PS Ratio compare vs other companies in the AU Software Industry?

15 Companies	Price / Sales	Estimated Growth	Market Cap
ADA Adacel Technologies	0.6x	10.4%	US$18.66m
MOQ MOQ	0.3x	n/a	US$15.57m
DUB Dubber	0.5x	n/a	US$12.07m
NOV Novatti Group	0.3x	9.4%	US$8.48m

15 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: PRO is good value based on its Price-To-Sales Ratio (1.6x) compared to the Australian Software industry average (2.9x).

Price to Sales Ratio vs Fair Ratio

What is PRO'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.

PRO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.6x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate PRO's Price-To-Sales Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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