ReadyTech Holdings Limited

CHIA:RDY Stock Report

Market Cap: AU$349.8m

ReadyTech Holdings Valuation

Is RDY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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$2.91) is trading below our estimate of fair value (A$7.08)

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 Ratio64x
EarningsAU$5.46m
Market CapAU$349.80m

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 Average60.6x
PPS Praemium
36.2x22.5%AU$316.4m
DUG DUG Technology
47.5x33.5%AU$202.5m
IFM Infomedia
39x21.0%AU$494.7m
EOL Energy One
119.7x48.5%AU$172.5m
RDY ReadyTech Holdings
64x24.2%AU$349.8m

Price-To-Earnings vs Peers: RDY is expensive based on its Price-To-Earnings Ratio (64x) compared to the peer average (60.6x).

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
3.8x-20.4%US$67.42m
No more companies available in this PE range
RDY 64.0xIndustry Avg. 64.0xNo. of Companies3PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RDY is good value based on its Price-To-Earnings Ratio (64x) compared to the Australian Software industry average (64x).

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 Ratio64x
Fair PE Ratio43x

Price-To-Earnings vs Fair Ratio: RDY is expensive based on its Price-To-Earnings Ratio (64x) compared to the estimated Fair Price-To-Earnings Ratio (43x).

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$2.91
AU$4.08
+40.3%
10.8%AU$4.80AU$3.54n/a6
Nov ’25AU$2.92
AU$4.09
+40.0%
10.6%AU$4.80AU$3.54n/a6
Oct ’25AU$2.97
AU$4.09
+37.7%
10.6%AU$4.80AU$3.54n/a6
Sep ’25AU$3.08
AU$4.09
+32.8%
10.6%AU$4.80AU$3.54n/a6
Aug ’25AU$3.31
AU$4.09
+23.7%
10.7%AU$4.90AU$3.50n/a6
Jul ’25AU$3.22
AU$4.09
+27.1%
10.7%AU$4.90AU$3.50n/a6
Jun ’25AU$3.27
AU$4.09
+25.2%
10.7%AU$4.90AU$3.50n/a6
May ’25AU$3.36
AU$4.09
+21.8%
10.7%AU$4.90AU$3.50n/a6
Apr ’25AU$3.34
AU$4.09
+22.6%
10.7%AU$4.90AU$3.50n/a6
Mar ’25AU$3.52
AU$4.13
+17.5%
11.2%AU$4.90AU$3.50n/a6
Feb ’25AU$3.45
AU$4.29
+24.4%
9.6%AU$5.00AU$3.65n/a6
Jan ’25AU$3.48
AU$4.29
+23.3%
9.6%AU$5.00AU$3.65n/a6
Dec ’24AU$3.51
AU$4.29
+22.2%
9.6%AU$5.00AU$3.65n/a6
Nov ’24AU$3.46
AU$4.29
+24.0%
9.6%AU$5.00AU$3.65AU$2.926
Oct ’24AU$3.63
AU$4.33
+19.3%
8.2%AU$5.00AU$3.89AU$2.976
Sep ’24AU$3.65
AU$4.21
+15.2%
9.3%AU$5.00AU$3.80AU$3.086
Aug ’24AU$3.28
AU$4.09
+24.8%
7.0%AU$4.60AU$3.70AU$3.316
Jul ’24AU$3.29
AU$4.12
+25.1%
7.4%AU$4.60AU$3.70AU$3.226
Jun ’24AU$3.08
AU$4.13
+34.2%
6.8%AU$4.60AU$3.80AU$3.276
May ’24AU$3.10
AU$4.13
+33.4%
6.8%AU$4.60AU$3.80AU$3.366
Apr ’24AU$3.04
AU$4.13
+36.0%
6.8%AU$4.60AU$3.80AU$3.346
Mar ’24AU$3.19
AU$4.25
+33.3%
6.4%AU$4.60AU$3.89AU$3.524
Feb ’24AU$3.64
AU$4.32
+18.6%
5.0%AU$4.60AU$4.05AU$3.454
Jan ’24AU$3.38
AU$4.28
+26.7%
4.8%AU$4.60AU$4.05AU$3.484
Dec ’23AU$3.95
AU$4.39
+11.2%
3.8%AU$4.60AU$4.18AU$3.514
Nov ’23AU$4.14
AU$4.28
+3.4%
4.8%AU$4.60AU$4.04AU$3.464

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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