Temenos AG

SWX:TEMN Stock Report

Market Cap: CHF 4.5b

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 (CHF61.5) is trading below our estimate of fair value (CHF84.44)

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?

Other financial metrics that can be useful for relative valuation.

TEMN 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/Revenue5.5x
Enterprise Value/EBITDA24.3x
PEG Ratio2.5x

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 Average40.1x
PEGA Pegasystems
66.4x23.1%US$5.0b
ACIW ACI Worldwide
27.8x15.7%US$4.0b
SIM SimCorp
37.5xn/aDKK 28.8b
600570 Hundsun Technologies
28.7x18.9%CN¥33.5b
TEMN Temenos
36.4x14.7%CHF 4.5b

Price-To-Earnings vs Peers: TEMN is good value based on its Price-To-Earnings Ratio (36.4x) compared to the peer average (41x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a29.4%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a29.4%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: TEMN is expensive based on its Price-To-Earnings Ratio (36.4x) compared to the European Software industry average (33.1x).

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 Ratio36.4x
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 61.50
CHF 69.30
+12.7%
20.2%CHF 98.71CHF 52.07n/a15
Jun ’25CHF 58.00
CHF 69.97
+20.6%
20.3%CHF 99.74CHF 52.61n/a15
May ’25CHF 57.50
CHF 70.78
+23.1%
20.0%CHF 99.98CHF 52.74n/a15
Apr ’25CHF 64.48
CHF 75.13
+16.5%
19.7%CHF 103.82CHF 57.46n/a15
Mar ’25CHF 66.78
CHF 75.07
+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 70.39
-10.0%
17.7%CHF 98.31CHF 46.24n/a16
Dec ’24CHF 74.24
CHF 70.97
-4.4%
16.9%CHF 100.84CHF 47.43n/a16
Nov ’24CHF 65.78
CHF 70.16
+6.7%
17.4%CHF 100.50CHF 47.27n/a16
Oct ’24CHF 64.42
CHF 72.53
+12.6%
18.8%CHF 105.63CHF 49.67n/a16
Sep ’24CHF 69.74
CHF 69.40
-0.5%
19.5%CHF 101.24CHF 47.61n/a17
Aug ’24CHF 74.76
CHF 68.47
-8.4%
19.7%CHF 100.32CHF 47.17n/a17
Jul ’24CHF 71.14
CHF 68.28
-4.0%
18.6%CHF 100.50CHF 47.24n/a17
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
Nov ’23CHF 58.70
CHF 60.45
+3.0%
26.1%CHF 109.12CHF 42.69CHF 65.7816
Oct ’23CHF 67.44
CHF 98.00
+45.3%
31.8%CHF 191.12CHF 67.32CHF 64.4216
Sep ’23CHF 74.36
CHF 96.68
+30.0%
31.0%CHF 186.81CHF 65.80CHF 69.7416
Aug ’23CHF 75.00
CHF 97.99
+30.7%
29.7%CHF 186.83CHF 69.55CHF 74.7616
Jul ’23CHF 81.48
CHF 112.72
+38.3%
24.7%CHF 187.05CHF 84.78CHF 71.1416
Jun ’23CHF 91.12
CHF 115.00
+26.2%
24.6%CHF 191.03CHF 88.39CHF 76.8216

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

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