Altium Limited

CHIA:ALU Stock Report

Market Cap: AU$9.0b

This company listing is no longer active

This company may still be operating, however this listing is no longer active.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 Average105.3x
TNE Technology One
85.7x16.1%AU$10.1b
XRO Xero
132.1x26.6%AU$25.8b
WTC WiseTech Global
154x24.1%AU$40.5b
OCL Objective
49.6x6.6%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
2.9x-20.4%US$48.53m
No more companies available in this PE range
ALU 84.4xIndustry Avg. 67.8xNo. 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
Dec ’25n/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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/08/01 17:41
End of Day Share Price 2024/08/01 00:00
Earnings2023/12/31
Annual Earnings2023/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Altium Limited is covered by 21 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Russell WrightAPP Securities Pty Ltd.
Russell WrightBarclay Pearce Capital Pty Limited
Ware KuoBofA Global Research