Temenos AG

SWX:TEMN Stock Report

Market Cap: CHF 4.7b

Temenos Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: TEMN (CHF64.65) is trading below our estimate of fair value (CHF107.8)

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

Key Valuation Metric

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

Key metric: As TEMN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TEMN. This is calculated by dividing TEMN's market cap by their current earnings.
What is TEMN's PE Ratio?
PE Ratio36.6x
EarningsUS$144.08m
Market CapUS$5.28b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TEMN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average65.6x
ACIW ACI Worldwide
24x2.9%US$5.6b
BOX Box
39.1x14.2%US$4.6b
688318 Shenzhen Fortune Trend technology
128.4x39.2%CN¥32.9b
BLKB Blackbaud
70.8x25.5%US$3.9b
TEMN Temenos
36.6x11.6%CHF 4.7b

Price-To-Earnings vs Peers: TEMN is good value based on its Price-To-Earnings Ratio (36.6x) compared to the peer average (66.3x).

Price to Earnings Ratio vs Industry

How does TEMN's PE Ratio compare vs other companies in the European Software Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TEMN 36.6xIndustry Avg. 26.0xNo. of Companies19PE020406080100+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TEMN is expensive based on its Price-To-Earnings Ratio (36.6x) compared to the European Software industry average (26x).

Price to Earnings Ratio vs Fair Ratio

What is TEMN'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.

TEMN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate TEMN's Price-To-Earnings Fair Ratio for valuation analysis.

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 TEMN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 64.65
CHF 67.67
+4.7%
14.8%CHF 86.47CHF 51.03n/a16
Dec ’25CHF 57.85
CHF 66.26
+14.5%
14.8%CHF 85.28CHF 50.33n/a16
Nov ’25CHF 60.15
CHF 65.41
+8.8%
15.6%CHF 85.39CHF 49.76n/a16
Oct ’25CHF 57.85
CHF 64.73
+11.9%
17.2%CHF 86.22CHF 49.02n/a15
Sep ’25CHF 59.10
CHF 65.22
+10.4%
16.8%CHF 87.78CHF 49.91n/a15
Aug ’25CHF 60.90
CHF 67.03
+10.1%
16.6%CHF 90.05CHF 51.20n/a15
Jul ’25CHF 62.50
CHF 69.63
+11.4%
20.1%CHF 98.81CHF 52.31n/a15
Jun ’25CHF 58.00
CHF 69.93
+20.6%
20.3%CHF 99.37CHF 52.61n/a15
May ’25CHF 57.50
CHF 70.75
+23.0%
20.0%CHF 99.62CHF 52.74n/a15
Apr ’25CHF 64.48
CHF 75.14
+16.5%
19.8%CHF 103.82CHF 57.46n/a15
Mar ’25CHF 66.78
CHF 75.08
+12.4%
19.3%CHF 100.93CHF 55.86n/a15
Feb ’25CHF 88.26
CHF 80.67
-8.6%
16.5%CHF 100.14CHF 58.48n/a15
Jan ’25CHF 78.22
CHF 70.42
-10.0%
17.7%CHF 98.71CHF 46.24n/a16
Dec ’24CHF 74.24
CHF 69.90
-5.8%
17.0%CHF 99.69CHF 46.70CHF 57.8516
Nov ’24CHF 65.78
CHF 70.16
+6.7%
17.4%CHF 100.50CHF 47.27CHF 60.1516
Oct ’24CHF 64.42
CHF 72.53
+12.6%
18.8%CHF 105.63CHF 49.67CHF 57.8516
Sep ’24CHF 69.74
CHF 69.40
-0.5%
19.5%CHF 101.24CHF 47.61CHF 59.1017
Aug ’24CHF 74.76
CHF 68.47
-8.4%
19.7%CHF 100.32CHF 47.17CHF 60.9017
Jul ’24CHF 71.14
CHF 68.28
-4.0%
18.6%CHF 100.50CHF 47.24CHF 62.5017
Jun ’24CHF 76.82
CHF 68.59
-10.7%
18.6%CHF 100.84CHF 47.40CHF 58.0017
May ’24CHF 74.68
CHF 68.06
-8.9%
18.7%CHF 100.36CHF 47.18CHF 57.5017
Apr ’24CHF 63.28
CHF 63.52
+0.4%
18.5%CHF 86.45CHF 46.45CHF 64.4817
Mar ’24CHF 70.00
CHF 63.47
-9.3%
18.3%CHF 88.06CHF 47.31CHF 66.7817
Feb ’24CHF 64.86
CHF 57.41
-11.5%
18.7%CHF 84.68CHF 44.18CHF 88.2616
Jan ’24CHF 50.74
CHF 56.96
+12.3%
27.7%CHF 109.05CHF 40.15CHF 78.2216
Dec ’23CHF 58.50
CHF 59.19
+1.2%
28.7%CHF 111.69CHF 41.12CHF 74.2416

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/18 18:38
End of Day Share Price 2024/12/18 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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

Temenos AG is covered by 38 analysts. 15 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Alexander ToutArete Research Services LLP
Knut WollerBaader Helvea Equity Research
Christoph WirtzBank am Bellevue