ReadyTech Holdings Limited

ASX:RDY Stock Report

Market Cap: AU$345.0m

ReadyTech Holdings Valuation

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

Below Fair Value: RDY (A$2.98) is trading below our estimate of fair value (A$7.07)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for RDY. This is calculated by dividing RDY's market cap by their current earnings.
What is RDY's PE Ratio?
PE Ratio65.6x
EarningsAU$5.46m
Market CapAU$344.99m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RDY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average63.1x
PPS Praemium
36.4x22.5%AU$311.6m
DUG DUG Technology
49.1x33.5%AU$214.9m
IFM Infomedia
40.2x21.0%AU$505.9m
EOL Energy One
126.9x48.5%AU$185.4m
RDY ReadyTech Holdings
65.6x24.2%AU$345.0m

Price-To-Earnings vs Peers: RDY is expensive based on its Price-To-Earnings Ratio (65.6x) compared to the peer average (63.1x).

Price to Earnings Ratio vs Industry

How does RDY'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
RDY 65.6xIndustry Avg. 63.1xNo. of Companies3PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RDY is expensive based on its Price-To-Earnings Ratio (65.6x) compared to the Australian Software industry average (63.1x).

Price to Earnings Ratio vs Fair Ratio

What is RDY'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.

RDY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio65.6x
Fair PE Ratio42.6x

Price-To-Earnings vs Fair Ratio: RDY is expensive based on its Price-To-Earnings Ratio (65.6x) compared to the estimated Fair Price-To-Earnings Ratio (42.6x).

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 RDY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$2.98
AU$4.08
+37.0%
10.8%AU$4.80AU$3.54n/a6
Nov ’25AU$2.95
AU$4.09
+38.6%
10.6%AU$4.80AU$3.54n/a6
Oct ’25AU$2.93
AU$4.09
+39.5%
10.6%AU$4.80AU$3.54n/a6
Sep ’25AU$3.14
AU$4.09
+30.2%
10.6%AU$4.80AU$3.54n/a6
Aug ’25AU$3.28
AU$4.09
+24.8%
10.7%AU$4.90AU$3.50n/a6
Jul ’25AU$3.21
AU$4.09
+27.5%
10.7%AU$4.90AU$3.50n/a6
Jun ’25AU$3.28
AU$4.09
+24.8%
10.7%AU$4.90AU$3.50n/a6
May ’25AU$3.39
AU$4.09
+20.7%
10.7%AU$4.90AU$3.50n/a6
Apr ’25AU$3.35
AU$4.09
+22.2%
10.7%AU$4.90AU$3.50n/a6
Mar ’25AU$3.52
AU$4.13
+17.6%
11.2%AU$4.90AU$3.50n/a6
Feb ’25AU$3.44
AU$4.29
+24.7%
9.6%AU$5.00AU$3.65n/a6
Jan ’25AU$3.51
AU$4.29
+22.2%
9.6%AU$5.00AU$3.65n/a6
Dec ’24AU$3.50
AU$4.29
+22.6%
9.6%AU$5.00AU$3.65n/a6
Nov ’24AU$3.41
AU$4.29
+25.8%
9.6%AU$5.00AU$3.65AU$2.956
Oct ’24AU$3.70
AU$4.33
+17.0%
8.2%AU$5.00AU$3.89AU$2.936
Sep ’24AU$3.65
AU$4.21
+15.2%
9.3%AU$5.00AU$3.80AU$3.146
Aug ’24AU$3.34
AU$4.09
+22.5%
7.0%AU$4.60AU$3.70AU$3.286
Jul ’24AU$3.30
AU$4.12
+24.8%
7.4%AU$4.60AU$3.70AU$3.216
Jun ’24AU$3.06
AU$4.13
+35.1%
6.8%AU$4.60AU$3.80AU$3.286
May ’24AU$3.11
AU$4.13
+32.9%
6.8%AU$4.60AU$3.80AU$3.396
Apr ’24AU$3.09
AU$4.13
+33.8%
6.8%AU$4.60AU$3.80AU$3.356
Mar ’24AU$3.21
AU$4.25
+32.4%
6.4%AU$4.60AU$3.89AU$3.524
Feb ’24AU$3.61
AU$4.32
+19.6%
5.0%AU$4.60AU$4.05AU$3.444
Jan ’24AU$3.40
AU$4.28
+25.9%
4.8%AU$4.60AU$4.05AU$3.514
Dec ’23AU$3.95
AU$4.39
+11.2%
3.8%AU$4.60AU$4.18AU$3.504
Nov ’23AU$4.15
AU$4.28
+3.1%
4.8%AU$4.60AU$4.04AU$3.414

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

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