Elastic N.V.

DB:3E1 Stock Report

Market Cap: €11.0b

Elastic Valuation

Is 3E1 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 3E1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3E1 (€105.45) is trading below our estimate of fair value (€160.23)

Significantly Below Fair Value: 3E1 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3E1?

Key metric: As 3E1 is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 3E1. This is calculated by dividing 3E1's market cap by their current revenue.
What is 3E1's PS Ratio?
PS Ratio8.4x
SalesUS$1.38b
Market CapUS$11.55b

Price to Sales Ratio vs Peers

How does 3E1's PS Ratio compare to its peers?

The above table shows the PS ratio for 3E1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average13.8x
NEM Nemetschek
12.3x14.1%€11.4b
NB2 Northern Data
28.9x31.5%€2.2b
AOF ATOSS Software
11.5x12.7%€1.9b
TMV TeamViewer
2.7x6.5%€1.8b
3E1 Elastic
8.4x12.3%€11.6b

Price-To-Sales vs Peers: 3E1 is good value based on its Price-To-Sales Ratio (8.4x) compared to the peer average (13.8x).

Price to Sales Ratio vs Industry

How does 3E1's PS Ratio compare vs other companies in the DE Software Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
CSH CENIT
0.3x5.2%US$72.61m
CLIQ Cliq Digital
0.08x13.2%US$24.31m
LSX LS telcom
0.5x5.0%US$21.28m
IVX InVision
0.6xn/aUS$9.66m
3E1 8.4xIndustry Avg. 2.2xNo. of Companies7PS02.44.87.29.612+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 3E1 is expensive based on its Price-To-Sales Ratio (8.4x) compared to the German Software industry average (2.2x).

Price to Sales Ratio vs Fair Ratio

What is 3E1'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.

3E1 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio8.4x
Fair PS Ratio8.7x

Price-To-Sales vs Fair Ratio: 3E1 is good value based on its Price-To-Sales Ratio (8.4x) compared to the estimated Fair Price-To-Sales Ratio (8.7x).

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 3E1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€104.80
€120.80
+15.3%
10.4%€142.92€88.72n/a23
Nov ’25€73.40
€92.85
+26.5%
12.2%€120.06€69.26n/a24
Oct ’25€68.74
€90.44
+31.6%
12.3%€116.45€67.19n/a24
Sep ’25€68.12
€92.37
+35.6%
12.4%€117.62€67.86n/a22
Aug ’25€101.00
€116.77
+15.6%
12.0%€142.21€84.41n/a22
Jul ’25€105.95
€116.77
+10.2%
12.0%€142.21€84.41n/a22
Jun ’25€92.52
€116.90
+26.4%
11.5%€133.66€84.81n/a22
May ’25€96.60
€121.23
+25.5%
14.4%€169.16€84.12n/a22
Apr ’25€92.90
€121.23
+30.5%
14.4%€169.16€84.12n/a22
Mar ’25€107.00
€121.43
+13.5%
15.9%€170.72€84.90n/a22
Feb ’25€108.20
€102.11
-5.6%
16.9%€128.79€61.63n/a21
Jan ’25€102.60
€94.97
-7.4%
15.0%€120.17€61.46n/a21
Dec ’24€97.20
€91.39
-6.0%
12.3%€110.34€61.61n/a21
Nov ’24€70.30
€78.08
+11.1%
10.9%€94.93€63.60€73.4021
Oct ’24€76.40
€76.00
-0.5%
9.3%€86.08€63.38€68.7421
Sep ’24€63.40
€72.72
+14.7%
10.1%€83.55€55.70€68.1221
Aug ’24€60.20
€69.63
+15.7%
10.6%€82.46€54.97€101.0020
Jul ’24€58.60
€69.63
+18.8%
10.6%€82.46€54.97€105.9520
Jun ’24€69.40
€67.03
-3.4%
13.7%€85.50€51.12€92.5219
May ’24€51.40
€63.54
+23.6%
12.2%€77.14€49.91€96.6019
Apr ’24€50.80
€65.82
+29.6%
13.5%€79.94€47.03€92.9020
Mar ’24€54.04
€67.09
+24.1%
16.5%€90.74€47.26€107.0020
Feb ’24€53.26
€65.87
+23.7%
19.1%€91.90€45.95€108.2020
Jan ’24€47.73
€71.26
+49.3%
17.1%€93.60€48.67€102.6020
Dec ’23€53.06
€76.69
+44.5%
22.5%€129.20€49.40€97.2018
Nov ’23€63.30
€101.11
+59.7%
17.2%€156.89€73.89€70.3019

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

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