The Descartes Systems Group Inc.

TSX:DSG Stock Report

Market Cap: CA$14.3b

Descartes Systems Group Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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.

Discounted Cash Flow
Simply Wall St
CA$140.12
Fair Value
21.4% overvalued intrinsic discount
1
Number of Analysts


Key Valuation Metric

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

Key metric:

The above table shows the Price to Earnings ratio for DSG. This is calculated by dividing DSG's market cap by their current earnings.
What is DSG's PE Ratio?
PE Ratio73.3x
EarningsUS$137.74m
Market CapUS$9.92b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average110.5x
TOI Topicus.com
88xn/aCA$11.0b
KXS Kinaxis
162.2x42.9%CA$4.8b
CSU Constellation Software
119.6x24.6%CA$100.1b
DCBO Docebo
72.1x38.9%CA$1.9b
DSG Descartes Systems Group
72.9x15.5%CA$14.3b


Price to Earnings Ratio vs Industry

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

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GRDI Griid Infrastructure
3.3xn/aUS$70.78m
IDLE.X Generative AI Solutions
0.08xn/aUS$8.15m
LIQD Liquid Meta Capital Holdings
2.4xn/aUS$2.74m
SPAI Sparc Al
0.9xn/aUS$1.90m
DSG 73.3xIndustry Avg. 41.2xNo. of Companies8PE020406080100+
8 CompaniesEstimated GrowthMarket Cap
No more companies


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 Ratio73.3x
Fair PE Ratio54x


Analyst Price Targets

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

Analyst Price Target
Consensus Narrative from 1 Analyst
CA$126.92
Fair Value
34.0% overvalued intrinsic discount
1
Number of Analysts


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/30 22:53
End of Day Share Price 2025/01/30 00:00
Earnings2024/10/31
Annual Earnings2024/01/31

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

The Descartes Systems Group Inc. is covered by 33 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ishan MajumdarBaptista Research
Raimo LenschowBarclays
Gabriel LeungBeacon Securities Limited