Iress Limited

CHIA:IRE Stock Report

Market Cap: AU$1.7b

Iress Valuation

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

Below Fair Value: IRE (A$9.33) is trading below our estimate of fair value (A$15.45)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for IRE. This is calculated by dividing IRE's market cap by their current earnings.
What is IRE's PE Ratio?
PE Ratio85.7x
EarningsAU$19.59m
Market CapAU$1.68b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for IRE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average72.3x
OCL Objective
50.6x6.5%AU$1.6b
HSN Hansen Technologies
51.7x22.2%AU$1.1b
BVS Bravura Solutions
111.3x5.6%AU$977.3m
RUL RPMGlobal Holdings
75.7x22.6%AU$655.6m
IRE Iress
85.7x29.1%AU$1.7b

Price-To-Earnings vs Peers: IRE is expensive based on its Price-To-Earnings Ratio (85.7x) compared to the peer average (72.3x).

Price to Earnings Ratio vs Industry

How does IRE'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$49.82m
No more companies available in this PE range
IRE 85.7xIndustry Avg. 70.0xNo. of Companies3PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IRE is expensive based on its Price-To-Earnings Ratio (85.7x) compared to the Australian Software industry average (70x).

Price to Earnings Ratio vs Fair Ratio

What is IRE'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.

IRE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio85.7x
Fair PE Ratio54x

Price-To-Earnings vs Fair Ratio: IRE is expensive based on its Price-To-Earnings Ratio (85.7x) compared to the estimated Fair Price-To-Earnings Ratio (54x).

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 IRE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$9.33
AU$10.44
+11.9%
8.2%AU$12.00AU$9.25n/a9
Dec ’25AU$9.28
AU$10.47
+12.8%
8.5%AU$12.00AU$9.25n/a9
Nov ’25AU$9.86
AU$10.47
+6.2%
8.5%AU$12.00AU$9.25n/a9
Oct ’25AU$10.01
AU$10.24
+2.4%
10.6%AU$12.00AU$8.20n/a10
Sep ’25AU$9.68
AU$10.24
+5.8%
10.6%AU$12.00AU$8.20n/a10
Aug ’25AU$10.58
AU$9.87
-6.7%
10.7%AU$11.31AU$8.20n/a10
Jul ’25AU$7.98
AU$9.17
+14.9%
8.1%AU$10.80AU$8.20n/a10
Jun ’25AU$7.95
AU$9.17
+15.3%
8.1%AU$10.80AU$8.20n/a10
May ’25AU$8.49
AU$9.03
+6.4%
8.4%AU$10.80AU$8.20n/a10
Apr ’25AU$8.32
AU$9.03
+8.5%
8.4%AU$10.80AU$8.20n/a10
Mar ’25AU$7.96
AU$8.83
+10.9%
9.0%AU$10.80AU$8.00n/a10
Feb ’25AU$8.16
AU$8.88
+8.8%
11.2%AU$11.40AU$7.70n/a10
Jan ’25AU$8.12
AU$8.80
+8.4%
11.7%AU$11.40AU$7.70n/a10
Dec ’24AU$7.32
AU$8.90
+21.6%
12.7%AU$11.40AU$7.70AU$9.288
Nov ’24AU$5.05
AU$8.30
+64.4%
20.2%AU$11.40AU$5.68AU$9.869
Oct ’24AU$5.80
AU$8.31
+43.3%
20.4%AU$11.50AU$5.68AU$10.019
Sep ’24AU$6.46
AU$8.31
+28.7%
20.4%AU$11.50AU$5.68AU$9.689
Aug ’24AU$10.46
AU$10.84
+3.6%
13.1%AU$13.50AU$9.26AU$10.589
Jul ’24AU$10.25
AU$10.84
+5.8%
13.1%AU$13.50AU$9.26AU$7.989
Jun ’24AU$10.42
AU$10.84
+4.1%
13.1%AU$13.50AU$9.26AU$7.959
May ’24AU$10.29
AU$10.94
+6.3%
13.5%AU$13.50AU$9.26AU$8.498
Apr ’24AU$9.92
AU$10.87
+9.6%
16.1%AU$14.00AU$9.20AU$8.328
Mar ’24AU$9.26
AU$10.87
+17.4%
16.1%AU$14.00AU$9.20AU$7.968
Feb ’24AU$9.59
AU$11.94
+24.5%
11.0%AU$13.80AU$10.05AU$8.168
Jan ’24AU$9.57
AU$11.89
+24.3%
11.4%AU$14.00AU$10.05AU$8.129
Dec ’23AU$9.64
AU$11.89
+23.4%
11.4%AU$14.00AU$10.05AU$7.329

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/24 19:21
End of Day Share Price 2024/12/24 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

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

Iress Limited is covered by 26 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Anthony HooANZ Equities Pty Limited
Russell WrightBarclay Pearce Capital Pty Limited
Nicholas McGarrigleBarrenjoey Markets Pty Limited