Altium Limited

CHIA:ALU Stock Report

Market Cap: AU$9.0b

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This company may still be operating, however this listing is no longer active. Find out why through their latest events.

Altium Valuation

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

Below Fair Value: ALU (A$68.31) is trading below our estimate of fair value (A$75.26)

Significantly Below Fair Value: ALU is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ALU. This is calculated by dividing ALU's market cap by their current earnings.
What is ALU's PE Ratio?
PE Ratio84.4x
EarningsUS$69.73m
Market CapUS$5.89b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ALU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average106.7x
TNE Technology One
84.2x16.1%AU$9.9b
XRO Xero
136.4x26.4%AU$26.4b
WTC WiseTech Global
153.6x23.4%AU$40.4b
OCL Objective
52.6x6.3%AU$1.6b
ALU Altium
84.4x20.1%AU$9.0b

Price-To-Earnings vs Peers: ALU is good value based on its Price-To-Earnings Ratio (84.4x) compared to the peer average (95x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
IRI Integrated Research
3.8x-20.4%US$67.46m
No more companies available in this PE range
ALU 84.4xIndustry Avg. 64.0xNo. of Companies3PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ALU is expensive based on its Price-To-Earnings Ratio (84.4x) compared to the Australian Software industry average (63.5x).

Price to Earnings Ratio vs Fair Ratio

What is ALU'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.

ALU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio84.4x
Fair PE Ratio56.7x

Price-To-Earnings vs Fair Ratio: ALU is expensive based on its Price-To-Earnings Ratio (84.4x) compared to the estimated Fair Price-To-Earnings Ratio (56.7x).

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 ALU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
AU$64.90
0%
15.7%AU$68.50AU$36.09n/a9
Nov ’25n/a
AU$64.90
0%
15.7%AU$68.50AU$36.09n/a9
Oct ’25n/a
AU$64.90
0%
15.7%AU$68.50AU$36.09n/a9
Sep ’25n/a
AU$64.90
0%
15.7%AU$68.50AU$36.09n/a9
Aug ’25AU$68.31
AU$64.90
-5.0%
15.7%AU$68.50AU$36.09n/a9
Jul ’25AU$67.99
AU$65.75
-3.3%
13.1%AU$68.50AU$36.09n/a13
Jun ’25AU$66.87
AU$64.83
-3.0%
13.7%AU$68.50AU$36.09n/a13
May ’25AU$65.88
AU$64.95
-1.4%
13.7%AU$68.51AU$36.09n/a13
Apr ’25AU$65.31
AU$64.96
-0.5%
13.7%AU$68.62AU$36.09n/a13
Mar ’25AU$65.21
AU$64.93
-0.4%
13.7%AU$68.50AU$36.09n/a13
Feb ’25AU$49.51
AU$47.19
-4.7%
12.1%AU$56.50AU$36.60n/a15
Jan ’25AU$46.81
AU$45.57
-2.7%
10.2%AU$51.00AU$36.60n/a15
Dec ’24AU$44.43
AU$45.63
+2.7%
9.9%AU$51.00AU$36.60n/a15
Nov ’24AU$39.58
AU$43.22
+9.2%
12.1%AU$50.00AU$29.37n/a16
Oct ’24AU$43.18
AU$43.03
-0.3%
12.3%AU$50.00AU$29.37n/a15
Sep ’24AU$48.16
AU$41.95
-12.9%
12.4%AU$50.00AU$29.37n/a15
Aug ’24AU$38.65
AU$38.71
+0.2%
11.4%AU$43.50AU$29.37AU$68.3115
Jul ’24AU$36.89
AU$39.06
+5.9%
11.9%AU$44.00AU$29.37AU$67.9915
Jun ’24AU$39.64
AU$39.20
-1.1%
11.4%AU$44.00AU$29.37AU$66.8715
May ’24AU$37.47
AU$39.17
+4.5%
11.4%AU$44.00AU$29.37AU$65.8815
Apr ’24AU$37.87
AU$39.84
+5.2%
9.5%AU$44.00AU$32.00AU$65.3114
Mar ’24AU$38.60
AU$39.67
+2.8%
9.6%AU$44.00AU$32.00AU$65.2114
Feb ’24AU$38.11
AU$36.16
-5.1%
14.3%AU$42.32AU$24.17AU$49.5115
Jan ’24AU$35.28
AU$35.89
+1.7%
15.0%AU$42.32AU$24.17AU$46.8114
Dec ’23AU$38.31
AU$35.89
-6.3%
15.0%AU$42.32AU$24.17AU$44.4314
Nov ’23AU$35.99
AU$34.56
-4.0%
13.8%AU$41.00AU$24.17AU$39.5813

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

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