Technology One Valuation

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

Below Fair Value: TNE (A$16.97) is trading above our estimate of fair value (A$13.02)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

TNE 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/Revenue12.4x
Enterprise Value/EBITDA42.7x
PEG Ratio4.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TNE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average72.2x
ALU Altium
80.4x21.2%AU$8.6b
OCL Objective
45.9x11.0%AU$1.2b
HSN Hansen Technologies
22.3x13.0%AU$987.8m
WTC WiseTech Global
140.4x27.2%AU$31.1b
TNE Technology One
53.7x13.2%AU$5.5b

Price-To-Earnings vs Peers: TNE is good value based on its Price-To-Earnings Ratio (53.7x) compared to the peer average (72.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a33.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a33.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: TNE is good value based on its Price-To-Earnings Ratio (53.7x) compared to the Australian Software industry average (63x).


Price to Earnings Ratio vs Fair Ratio

What is TNE'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.

TNE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio53.7x
Fair PE Ratio49.7x

Price-To-Earnings vs Fair Ratio: TNE is expensive based on its Price-To-Earnings Ratio (53.7x) compared to the estimated Fair Price-To-Earnings Ratio (49.7x).


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 TNE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$16.97
AU$16.37
-3.5%
9.4%AU$18.50AU$14.00n/a15
Mar ’25AU$16.82
AU$16.29
-3.2%
9.0%AU$18.28AU$14.00n/a15
Feb ’25AU$15.55
AU$16.29
+4.8%
9.0%AU$18.28AU$14.00n/a15
Jan ’25AU$15.37
AU$16.09
+4.7%
10.0%AU$18.28AU$13.09n/a16
Dec ’24AU$15.25
AU$16.09
+5.5%
10.0%AU$18.28AU$13.09n/a16
Nov ’24AU$14.65
AU$15.67
+7.0%
12.3%AU$18.30AU$12.60n/a14
Oct ’24AU$15.51
AU$15.70
+1.3%
12.3%AU$18.30AU$12.60n/a14
Sep ’24AU$15.55
AU$15.49
-0.4%
14.2%AU$18.30AU$11.20n/a14
Aug ’24AU$15.72
AU$15.49
-1.5%
14.2%AU$18.30AU$11.20n/a14
Jul ’24AU$15.65
AU$15.35
-1.9%
14.5%AU$18.30AU$11.20n/a13
Jun ’24AU$16.47
AU$15.19
-7.8%
13.7%AU$18.12AU$11.20n/a13
May ’24AU$14.90
AU$13.27
-10.9%
11.7%AU$16.10AU$11.00n/a12
Apr ’24AU$14.54
AU$13.18
-9.4%
10.8%AU$15.50AU$11.00n/a12
Mar ’24AU$14.74
AU$13.18
-10.6%
10.8%AU$15.50AU$11.00AU$16.8212
Feb ’24AU$14.43
AU$13.18
-8.7%
10.8%AU$15.50AU$11.00AU$15.5512
Jan ’24AU$13.14
AU$13.07
-0.5%
9.8%AU$14.45AU$11.00AU$15.3712
Dec ’23AU$13.84
AU$12.64
-8.7%
10.9%AU$14.25AU$9.60AU$15.2512
Nov ’23AU$12.34
AU$11.57
-6.3%
10.0%AU$14.25AU$9.60AU$14.6512
Oct ’23AU$10.60
AU$11.57
+9.2%
10.5%AU$14.25AU$9.60AU$15.5111
Sep ’23AU$11.58
AU$11.57
-0.05%
10.5%AU$14.25AU$9.60AU$15.5511
Aug ’23AU$12.01
AU$11.43
-4.8%
8.4%AU$13.30AU$9.60AU$15.7211
Jul ’23AU$10.66
AU$11.43
+7.2%
8.4%AU$13.30AU$9.60AU$15.6511
Jun ’23AU$10.63
AU$11.45
+7.7%
8.6%AU$13.30AU$9.60AU$16.4711
May ’23AU$10.49
AU$11.79
+12.4%
12.6%AU$14.00AU$9.80AU$14.9011
Apr ’23AU$11.57
AU$11.58
+0.1%
12.0%AU$14.00AU$9.80AU$14.5410
Mar ’23AU$10.21
AU$11.66
+14.2%
13.5%AU$15.00AU$9.80AU$14.7410

Analyst Forecast: Target price is lower than the current share price.


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