Dye & Durham Limited

TSX:DND Stock Report

Market Cap: CA$1.2b

Dye & Durham Valuation

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

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DND when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DND (CA$18.42) is trading below our estimate of fair value (CA$30.38)

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

Key Valuation Metric

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

Key metric: As DND is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for DND. This is calculated by dividing DND's market cap by their current revenue.
What is DND's PS Ratio?
PS Ratio2.7x
SalesCA$457.54m
Market CapCA$1.20b

Price to Sales Ratio vs Peers

How does DND's PS Ratio compare to its peers?

The above table shows the PS ratio for DND vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.8x
BITF Bitfarms
5.6x75.4%CA$1.5b
ENGH Enghouse Systems
3.2x5.8%CA$1.6b
CMG Computer Modelling Group
6.6x13.3%CA$825.2m
CVO Coveo Solutions
3.6x11.4%CA$675.2m
DND Dye & Durham
2.7x8.3%CA$1.2b

Price-To-Sales vs Peers: DND is good value based on its Price-To-Sales Ratio (2.7x) compared to the peer average (4.8x).

Price to Sales Ratio vs Industry

How does DND's PS Ratio compare vs other companies in the CA Software Industry?

27 CompaniesPrice / SalesEstimated GrowthMarket Cap
QUIS Quisitive Technology Solutions
0.6x6.2%US$70.44m
BTCW Bitcoin Well
0.5xn/aUS$26.51m
PLUR Plurilock Security
0.4xn/aUS$20.12m
NOW NowVertical Group
0.4x6.2%US$17.65m
DND 2.7xIndustry Avg. 3.6xNo. of Companies27PS02.85.68.411.214+
27 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DND is good value based on its Price-To-Sales Ratio (2.7x) compared to the Canadian Software industry average (3.7x).

Price to Sales Ratio vs Fair Ratio

What is DND's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DND PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.7x
Fair PS Ratio5.7x

Price-To-Sales vs Fair Ratio: DND is good value based on its Price-To-Sales Ratio (2.7x) compared to the estimated Fair Price-To-Sales Ratio (5.7x).

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 DND forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$18.42
CA$22.37
+21.4%
9.0%CA$27.00CA$20.00n/a7
Nov ’25CA$19.51
CA$22.87
+17.2%
10.0%CA$28.00CA$20.00n/a7
Oct ’25CA$15.51
CA$21.17
+36.5%
16.9%CA$28.00CA$17.00n/a6
Sep ’25CA$13.83
CA$21.08
+52.4%
12.6%CA$25.00CA$17.50n/a6
Aug ’25CA$13.16
CA$21.08
+60.2%
12.6%CA$25.00CA$17.50n/a6
Jul ’25CA$12.32
CA$22.00
+78.6%
9.8%CA$25.00CA$18.00n/a6
Jun ’25CA$12.28
CA$22.00
+79.2%
9.8%CA$25.00CA$18.00n/a6
May ’25CA$14.69
CA$21.17
+44.1%
15.3%CA$25.00CA$16.00n/a6
Apr ’25CA$16.38
CA$21.17
+29.2%
15.3%CA$25.00CA$16.00n/a6
Mar ’25CA$13.15
CA$21.17
+61.0%
15.3%CA$25.00CA$16.00n/a6
Feb ’25CA$13.24
CA$23.75
+79.4%
22.9%CA$30.00CA$15.00n/a4
Jan ’25CA$14.36
CA$23.00
+60.2%
21.7%CA$30.00CA$15.00n/a6
Dec ’24CA$14.28
CA$21.43
+50.1%
28.1%CA$30.00CA$12.00n/a7
Nov ’24CA$8.71
CA$21.43
+146.0%
28.1%CA$30.00CA$12.00CA$19.517
Oct ’24CA$13.29
CA$27.83
+109.4%
7.6%CA$30.00CA$25.00CA$15.516
Sep ’24CA$17.91
CA$26.00
+45.2%
20.1%CA$33.00CA$16.00CA$13.837
Aug ’24CA$19.46
CA$24.83
+27.6%
19.1%CA$30.00CA$16.00CA$13.166
Jul ’24CA$18.11
CA$24.83
+37.1%
19.1%CA$30.00CA$16.00CA$12.326
Jun ’24CA$15.31
CA$24.83
+62.2%
19.1%CA$30.00CA$16.00CA$12.286
May ’24CA$14.44
CA$26.10
+80.7%
4.3%CA$28.00CA$25.00CA$14.695
Apr ’24CA$17.98
CA$24.42
+35.8%
16.0%CA$28.00CA$16.00CA$16.386
Mar ’24CA$18.93
CA$24.42
+29.0%
16.0%CA$28.00CA$16.00CA$13.156
Feb ’24CA$21.27
CA$22.58
+6.2%
18.6%CA$28.00CA$16.00CA$13.246
Jan ’24CA$16.41
CA$23.90
+45.6%
13.8%CA$28.00CA$20.00CA$14.365
Dec ’23CA$13.47
CA$23.90
+77.4%
13.8%CA$28.00CA$20.00CA$14.285
Nov ’23CA$15.45
CA$31.20
+101.9%
15.5%CA$38.00CA$23.00CA$8.715

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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