QuinStreet Valuation

Is 5Q8 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 5Q8 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 5Q8 (€21.4) is trading below our estimate of fair value (€45.75)

Significantly Below Fair Value: 5Q8 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 5Q8?

Key metric: As 5Q8 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 5Q8. This is calculated by dividing 5Q8's market cap by their current revenue.
What is 5Q8's PS Ratio?
PS Ratio1.7x
SalesUS$768.81m
Market CapUS$1.29b

Price to Sales Ratio vs Peers

How does 5Q8's PS Ratio compare to its peers?

The above table shows the PS ratio for 5Q8 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4x
NWO New Work
1.2x-4.1%€367.6m
G24 Scout24
10.8x8.0%€6.2b
SB1 Smartbroker Holding
2.6x8.5%€129.9m
YOC YOC
1.5x13.1%€53.9m
5Q8 QuinStreet
1.7x16.3%€1.3b

Price-To-Sales vs Peers: 5Q8 is good value based on its Price-To-Sales Ratio (1.7x) compared to the peer average (4x).


Price to Sales Ratio vs Industry

How does 5Q8's PS Ratio compare vs other companies in the European Interactive Media and Services Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
5Q8 1.7xIndustry Avg. 1.6xNo. of Companies11PS01.63.24.86.48+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 5Q8 is expensive based on its Price-To-Sales Ratio (1.7x) compared to the European Interactive Media and Services industry average (1.6x).


Price to Sales Ratio vs Fair Ratio

What is 5Q8'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.

5Q8 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.7x
Fair PS Ratio1.4x

Price-To-Sales vs Fair Ratio: 5Q8 is expensive based on its Price-To-Sales Ratio (1.7x) compared to the estimated Fair Price-To-Sales Ratio (1.4x).


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 5Q8 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€21.40
€26.54
+24.0%
9.5%€29.29€22.88n/a5
Nov ’25€19.20
€21.12
+10.0%
7.5%€23.16€18.53n/a5
Oct ’25€17.00
€20.88
+22.8%
7.5%€22.90€18.32n/a5
Sep ’25€17.00
€20.88
+22.8%
7.5%€22.90€18.32n/a5
Aug ’25€17.10
€19.46
+13.8%
7.2%€20.49€16.76n/a5
Jul ’25€15.20
€19.46
+28.1%
7.2%€20.49€16.76n/a5
Jun ’25€16.10
€18.87
+17.2%
6.9%€20.26€16.57n/a5
May ’25€15.90
€15.31
-3.7%
20.1%€20.20€11.27n/a5
Apr ’25€16.00
€13.78
-13.9%
14.9%€16.53€11.02n/a4
Mar ’25€13.50
€14.48
+7.2%
15.5%€17.63€11.14n/a5
Feb ’25€11.70
€12.60
+7.7%
23.1%€17.35€9.13n/a5
Jan ’25€11.90
€12.50
+5.0%
23.1%€17.46€9.19n/a5
Dec ’24€11.40
€12.50
+9.6%
23.1%€17.46€9.19n/a5
Nov ’24€10.60
€9.70
-8.5%
21.1%€13.25€8.52€19.204
Oct ’24€8.45
€8.57
+1.5%
5.1%€9.19€8.27€17.003
Sep ’24€9.10
€8.57
-5.8%
5.1%€9.19€8.27€17.003
Aug ’24€8.00
€9.68
+21.0%
8.8%€10.89€9.07€17.103
Jul ’24€8.00
€9.68
+21.0%
8.8%€10.89€9.07€15.203
Jun ’24€8.60
€9.68
+12.5%
8.8%€10.89€9.07€16.103
May ’24€9.95
€15.78
+58.6%
11.1%€18.30€13.72€15.904
Apr ’24€14.00
€16.86
+20.4%
10.4%€18.73€14.05€16.004
Mar ’24€15.90
€16.86
+6.0%
10.4%€18.73€14.05€13.504
Feb ’24€14.00
€13.03
-6.9%
18.5%€16.41€9.65€11.704
Jan ’24€13.00
€13.03
+0.3%
18.5%€16.41€9.65€11.904
Dec ’23€13.60
€13.03
-4.2%
18.5%€16.41€9.65€11.404
Nov ’23€11.50
€12.20
+6.1%
13.3%€13.66€9.76€10.604

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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