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Epsilon Net Valuation

Is 2OE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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 2OE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2OE (€11.28) is trading below our estimate of fair value (€15.57)

Significantly Below Fair Value: 2OE is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2OE?

Key metric: As 2OE is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2OE. This is calculated by dividing 2OE's market cap by their current earnings.
What is 2OE's PE Ratio?
PE Ratio	35.2x
Earnings	€18.45m
Market Cap	€650.40m

2OE 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/Revenue	6.9x
Enterprise Value/EBITDA	24.6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 2OE's PE Ratio compare to its peers?

The above table shows the PE ratio for 2OE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	26.6x
MUM Mensch und Maschine Software	27.6x	14.0%	€881.9m
AOF ATOSS Software	43.2x	7.8%	€1.9b
TMV TeamViewer	14.7x	11.1%	€1.7b
FAA Fabasoft	21x	3.3%	€192.5m
2OE Epsilon Net	35.2x	n/a	€650.4m

Price-To-Earnings vs Peers: 2OE is expensive based on its Price-To-Earnings Ratio (35.2x) compared to the peer average (29.1x).

Price to Earnings Ratio vs Industry

How does 2OE's PE Ratio compare vs other companies in the European Software Industry?

6 Companies	Price / Earnings	Estimated Growth	Market Cap

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 2OE is expensive based on its Price-To-Earnings Ratio (35.2x) compared to the European Software industry average (30.5x).

Price to Earnings Ratio vs Fair Ratio

What is 2OE'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.

2OE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	35.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 2OE'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?

Analyst Forecast: Insufficient data to show price forecast.

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