Enghouse Systems Valuation

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

Below Fair Value: ENGH (CA$29.88) is trading below our estimate of fair value (CA$55.32)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ENGH 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/Revenue3x
Enterprise Value/EBITDA13.6x
PEG Ratio2.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ENGH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average56.9x
CMG Computer Modelling Group
33.4x23.6%CA$809.2m
TINY Tiny
30.5xn/aCA$425.0m
DSG Descartes Systems Group
65.2x15.5%CA$10.4b
TOI Topicus.com
98.7xn/aCA$10.4b
ENGH Enghouse Systems
22.6x9.2%CA$1.7b

Price-To-Earnings vs Peers: ENGH is good value based on its Price-To-Earnings Ratio (22.6x) compared to the peer average (56.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: ENGH is good value based on its Price-To-Earnings Ratio (22.6x) compared to the Canadian Software industry average (31.9x).


Price to Earnings Ratio vs Fair Ratio

What is ENGH'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.

ENGH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.6x
Fair PE Ratio41.1x

Price-To-Earnings vs Fair Ratio: ENGH is good value based on its Price-To-Earnings Ratio (22.6x) compared to the estimated Fair Price-To-Earnings Ratio (41.1x).


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 ENGH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$29.88
CA$38.33
+28.3%
8.9%CA$43.00CA$35.00n/a3
Apr ’25CA$29.96
CA$38.33
+27.9%
8.9%CA$43.00CA$35.00n/a3
Mar ’25CA$35.85
CA$39.33
+9.7%
6.7%CA$43.00CA$37.00n/a3
Feb ’25CA$37.58
CA$39.33
+4.7%
6.7%CA$43.00CA$37.00n/a3
Jan ’25CA$35.10
CA$39.33
+12.1%
6.7%CA$43.00CA$37.00n/a3
Dec ’24CA$34.33
CA$37.83
+10.2%
9.8%CA$43.00CA$34.50n/a3
Nov ’24CA$33.13
CA$37.83
+14.2%
9.8%CA$43.00CA$34.50n/a3
Oct ’24CA$29.98
CA$37.83
+26.2%
9.8%CA$43.00CA$34.50n/a3
Sep ’24CA$30.70
CA$39.50
+28.7%
15.3%CA$48.00CA$34.50n/a3
Aug ’24CA$29.47
CA$39.50
+34.0%
15.3%CA$48.00CA$34.50n/a3
Jul ’24CA$32.19
CA$39.50
+22.7%
15.3%CA$48.00CA$34.50n/a3
Jun ’24CA$37.25
CA$40.88
+9.7%
14.1%CA$48.00CA$34.50n/a4
May ’24CA$37.56
CA$40.88
+8.8%
14.1%CA$48.00CA$34.50n/a4
Apr ’24CA$38.25
CA$40.88
+6.9%
14.1%CA$48.00CA$34.50CA$29.964
Mar ’24CA$43.87
CA$39.38
-10.2%
10.9%CA$45.00CA$34.50CA$35.854
Feb ’24CA$40.38
CA$39.13
-3.1%
10.2%CA$44.00CA$34.50CA$37.584
Jan ’24CA$35.97
CA$39.13
+8.8%
10.2%CA$44.00CA$34.50CA$35.104
Dec ’23CA$31.54
CA$37.38
+18.5%
13.0%CA$44.00CA$32.00CA$34.334
Nov ’23CA$29.99
CA$37.38
+24.6%
13.0%CA$44.00CA$32.00CA$33.134
Oct ’23CA$29.00
CA$37.38
+28.9%
13.0%CA$44.00CA$32.00CA$29.984
Sep ’23CA$31.59
CA$37.83
+19.8%
13.5%CA$45.00CA$33.50CA$30.703
Aug ’23CA$32.80
CA$37.83
+15.3%
13.5%CA$45.00CA$33.50CA$29.473
Jul ’23CA$28.43
CA$37.83
+33.1%
13.5%CA$45.00CA$33.50CA$32.193
Jun ’23CA$33.68
CA$50.67
+50.4%
6.5%CA$55.00CA$47.00CA$37.253
May ’23CA$36.13
CA$50.67
+40.2%
6.5%CA$55.00CA$47.00CA$37.563
Apr ’23CA$39.99
CA$50.67
+26.7%
6.5%CA$55.00CA$47.00CA$38.253

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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