Sangoma Technologies Corporation

TSX:STC Stock Report

Market Cap: CA$215.6m

Sangoma Technologies Valuation

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

Below Fair Value: STC (CA$6.52) is trading below our estimate of fair value (CA$38.03)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

STC 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/Revenue1x
Enterprise Value/EBITDA26.6x
PEG Ration/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for STC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.5x
QTRH Quarterhill
1.1x4.6%CA$204.8m
HAI Haivision Systems
1.1x6.6%CA$148.6m
VCM Vecima Networks
1.8x23.5%CA$496.2m
ET Evertz Technologies
2.2x5.8%CA$1.1b
STC Sangoma Technologies
0.6x4.1%CA$215.6m

Price-To-Sales vs Peers: STC is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (1.5x).


Price to Earnings Ratio vs Industry

How does STC's PE Ratio compare vs other companies in the North American Communications Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a50.4%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a50.4%
n/an/an/a
No more companies

Price-To-Sales vs Industry: STC is good value based on its Price-To-Sales Ratio (0.6x) compared to the North American Communications industry average (1.1x).


Price to Sales Ratio vs Fair Ratio

What is STC'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.

STC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ratio1.9x

Price-To-Sales vs Fair Ratio: STC is good value based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (1.9x).


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 STC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$6.52
CA$8.40
+28.8%
14.4%CA$10.10CA$7.50n/a3
Mar ’25CA$5.36
CA$7.99
+49.1%
18.4%CA$9.99CA$6.49n/a3
Feb ’25CA$3.78
CA$7.50
+98.3%
26.4%CA$10.19CA$5.49n/a3
Jan ’25CA$4.24
CA$7.68
+81.2%
27.2%CA$10.51CA$5.52n/a3
Dec ’24CA$4.26
CA$7.68
+80.3%
27.2%CA$10.51CA$5.52n/a3
Nov ’24CA$4.23
CA$9.01
+113.0%
22.7%CA$11.82CA$6.99n/a3
Oct ’24CA$4.72
CA$8.82
+86.9%
21.8%CA$11.49CA$6.99n/a3
Sep ’24CA$5.39
CA$11.02
+104.4%
17.5%CA$13.74CA$9.50n/a3
Aug ’24CA$6.57
CA$11.02
+67.7%
17.5%CA$13.74CA$9.50n/a3
Jul ’24CA$4.98
CA$10.96
+120.0%
17.8%CA$13.70CA$9.38n/a3
Jun ’24CA$5.12
CA$10.91
+113.1%
17.0%CA$14.02CA$9.01n/a5
May ’24CA$4.96
CA$12.70
+156.1%
22.7%CA$17.25CA$9.13n/a5
Apr ’24CA$5.08
CA$12.78
+151.6%
22.8%CA$17.31CA$9.16n/a5
Mar ’24CA$6.12
CA$12.77
+108.8%
22.8%CA$17.29CA$9.14CA$5.365
Feb ’24CA$6.00
CA$14.63
+143.8%
21.8%CA$20.05CA$12.02CA$3.785
Jan ’24CA$6.35
CA$14.63
+130.4%
21.8%CA$20.05CA$12.02CA$4.245
Dec ’23CA$6.43
CA$14.63
+127.5%
21.8%CA$20.05CA$12.02CA$4.265
Nov ’23CA$7.49
CA$18.28
+144.1%
20.4%CA$24.67CA$14.74CA$4.235
Oct ’23CA$7.21
CA$18.40
+155.2%
20.3%CA$24.88CA$14.86CA$4.725
Sep ’23CA$10.78
CA$23.81
+120.8%
18.3%CA$30.14CA$17.96CA$5.395
Aug ’23CA$9.99
CA$23.81
+138.3%
18.3%CA$30.14CA$17.96CA$6.575
Jul ’23CA$10.88
CA$23.81
+118.8%
18.3%CA$30.14CA$17.96CA$4.985
Jun ’23CA$11.51
CA$23.65
+105.5%
18.3%CA$29.94CA$17.84CA$5.125
May ’23CA$14.91
CA$31.67
+112.4%
22.2%CA$45.18CA$21.94CA$4.966
Apr ’23CA$17.86
CA$31.67
+77.3%
22.2%CA$45.18CA$21.94CA$5.086
Mar ’23CA$18.25
CA$30.56
+67.5%
24.6%CA$46.11CA$22.09CA$6.126

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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