Descartes Systems Group Valuation

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

Below Fair Value: DSG (CA$138.35) is trading below our estimate of fair value (CA$139.15)

Significantly Below Fair Value: DSG 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 DSG?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for DSG. This is calculated by dividing DSG's market cap by their current preferred multiple.
What is DSG's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	US$8.70b

DSG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	13.9x
Enterprise Value/EBITDA	34.2x
PEG Ratio	4.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for DSG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	86.8x
TOI Topicus.com	91.3x	n/a	CA$10.7b
KXS Kinaxis	157.9x	48.5%	CA$4.5b
DCBO Docebo	76.3x	34.0%	CA$1.8b
ENGH Enghouse Systems	21.5x	11.3%	CA$1.8b
DSG Descartes Systems Group	68.1x	14.3%	CA$11.8b

Price-To-Earnings vs Peers: DSG is good value based on its Price-To-Earnings Ratio (68.1x) compared to the peer average (86.8x).

Price to Earnings Ratio vs Industry

How does DSG's PE Ratio compare vs other companies in the CA Software Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	27.4%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	27.4%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: DSG is expensive based on its Price-To-Earnings Ratio (68.1x) compared to the Canadian Software industry average (41.3x).

Price to Earnings Ratio vs Fair Ratio

What is DSG'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.

DSG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	68.1x
Fair PE Ratio	50.9x

Price-To-Earnings vs Fair Ratio: DSG is expensive based on its Price-To-Earnings Ratio (68.1x) compared to the estimated Fair Price-To-Earnings Ratio (50.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.