NextGen Healthcare, Inc.

DB:QY1 Stock Report

Market Cap: €1.5b

NextGen Healthcare Valuation

Is QY1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 QY1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: QY1 (€22.2) is trading below our estimate of fair value (€27.19)

Significantly Below Fair Value: QY1 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for QY1?

Key metric: As QY1 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for QY1. This is calculated by dividing QY1's market cap by their current revenue.
What is QY1's PS Ratio?
PS Ratio2.3x
SalesUS$695.05m
Market CapUS$1.61b

Price to Sales Ratio vs Peers

How does QY1's PS Ratio compare to its peers?

The above table shows the PS ratio for QY1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.1x
NXU Nexus
4.4x9.8%€1.2b
COP CompuGroup Medical SE KGaA
0.6x1.4%€730.5m
M3V MeVis Medical Solutions
2.6xn/a€45.1m
AJ91 DocCheck
0.8xn/a€41.4m
QY1 NextGen Healthcare
2.3x6.7%€1.6b

Price-To-Sales vs Peers: QY1 is expensive based on its Price-To-Sales Ratio (2.3x) compared to the peer average (2.1x).

Price to Sales Ratio vs Industry

How does QY1's PS Ratio compare vs other companies in the European Healthcare Services Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
QY1 2.3xIndustry Avg. 2.2xNo. of Companies10PS02.44.87.29.612+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: QY1 is expensive based on its Price-To-Sales Ratio (2.3x) compared to the European Healthcare Services industry average (2.3x).

Price to Sales Ratio vs Fair Ratio

What is QY1'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.

QY1 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.3x
Fair PS Ratio2x

Price-To-Sales vs Fair Ratio: QY1 is expensive based on its Price-To-Sales Ratio (2.3x) compared to the estimated Fair Price-To-Sales Ratio (2x).

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 QY1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
€21.42
0%
11.5%€22.66€15.11n/a8
Nov ’25n/a
€21.42
0%
11.5%€22.66€15.11n/a8
Oct ’25n/a
€21.42
0%
11.5%€22.66€15.11n/a8
Sep ’25n/a
€21.42
0%
11.5%€22.66€15.11n/a8
Aug ’25n/a
€21.42
0%
11.5%€22.66€15.11n/a8
Jul ’25n/a
€21.42
0%
11.5%€22.66€15.11n/a8
Jun ’25n/a
€21.42
0%
11.5%€22.66€15.11n/a8
May ’25n/a
€21.42
0%
11.5%€22.66€15.11n/a8
Apr ’25n/a
€21.42
0%
11.5%€22.66€15.11n/a8
Mar ’25n/a
€21.42
0%
11.5%€22.66€15.11n/a8
Feb ’25n/a
€21.42
0%
11.5%€22.66€15.11n/a8
Jan ’25n/a
€21.42
0%
11.5%€22.66€15.11n/a8
Dec ’24n/a
€21.42
0%
11.5%€22.66€15.11n/a8
Nov ’24€22.40
€21.42
-4.4%
11.5%€22.66€15.11n/a8
Oct ’24€22.40
€21.26
-5.1%
11.6%€22.47€14.98n/a8
Sep ’24€16.70
€18.76
+12.3%
14.6%€23.11€14.79n/a10
Aug ’24€15.10
€18.62
+23.3%
16.2%€23.27€14.89n/a8
Jul ’24€14.70
€18.62
+26.6%
16.2%€23.27€14.89n/a8
Jun ’24€14.50
€18.80
+29.7%
15.2%€23.22€14.86n/a8
May ’24€15.30
€20.16
+31.8%
11.6%€23.83€17.41n/a8
Apr ’24€15.60
€20.24
+29.7%
12.0%€24.23€17.71n/a7
Mar ’24€17.00
€20.24
+19.1%
12.0%€24.23€17.71n/a7
Feb ’24€17.30
€19.77
+14.3%
12.8%€23.83€16.50n/a7
Jan ’24€17.60
€21.25
+20.8%
13.2%€25.79€17.85n/a7
Dec ’23€19.70
€21.25
+7.9%
13.2%€25.79€17.85n/a7
Nov ’23€20.20
€21.25
+5.2%
13.2%€25.79€17.85€22.407

Analyst Forecast: Target price is lower than the current share price.

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