Thoughtworks Holding, Inc.

DB:7W8 Stock Report

Market Cap: €1.4b

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Thoughtworks Holding Valuation

Is 7W8 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-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 7W8 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7W8 (€4.16) is trading below our estimate of fair value (€8.75)

Significantly Below Fair Value: 7W8 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7W8?

Key metric: As 7W8 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 7W8. This is calculated by dividing 7W8's market cap by their current revenue.
What is 7W8's PS Ratio?
PS Ratio1.4x
SalesUS$1.03b
Market CapUS$1.45b

Price to Sales Ratio vs Peers

How does 7W8's PS Ratio compare to its peers?

The above table shows the PS ratio for 7W8 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.1x
NA9 Nagarro
1.4x10.3%€1.3b
SANT Kontron
0.6x8.0%€1.1b
COK Cancom
0.4x3.8%€729.9m
YSN secunet Security Networks
1.9x8.0%€718.1m
7W8 Thoughtworks Holding
1.4x5.3%€1.5b

Price-To-Sales vs Peers: 7W8 is expensive based on its Price-To-Sales Ratio (1.4x) compared to the peer average (1x).

Price to Sales Ratio vs Industry

How does 7W8's PS Ratio compare vs other companies in the DE IT Industry?

1 CompanyPrice / SalesEstimated GrowthMarket Cap
ASKN asknet Solutions
0.01x20.1%US$984.32k
No more companies available in this PS range
7W8 1.4xIndustry Avg. 0.7xNo. of Companies6PS00.61.21.82.43+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 7W8 is expensive based on its Price-To-Sales Ratio (1.4x) compared to the German IT industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is 7W8'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.

7W8 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.4x
Fair PS Ratio1.8x

Price-To-Sales vs Fair Ratio: 7W8 is good value based on its Price-To-Sales Ratio (1.4x) compared to the estimated Fair Price-To-Sales Ratio (1.8x).

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 7W8 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
€4.40
0%
12.8%€5.65€4.14n/a6
Nov ’25€4.00
€4.27
+6.8%
12.8%€5.49€4.03n/a6
Oct ’25€3.96
€4.27
+7.9%
12.8%€5.49€4.03n/a6
Sep ’25€3.90
€4.27
+9.5%
12.8%€5.49€4.03n/a6
Aug ’25€3.18
€3.68
+15.9%
33.4%€5.50€2.29n/a8
Jul ’25€2.58
€3.80
+47.3%
31.7%€5.59€2.33n/a8
Jun ’25€2.52
€4.01
+59.1%
28.5%€5.58€2.79n/a7
May ’25€2.12
€3.86
+82.1%
28.2%€5.61€2.34n/a7
Apr ’25€2.34
€4.08
+74.3%
25.7%€5.49€2.52n/a8
Mar ’25€2.74
€4.37
+59.6%
20.1%€5.54€3.14n/a8
Feb ’25€4.24
€5.05
+19.2%
9.1%€5.51€4.60n/a8
Jan ’25€4.44
€4.94
+11.2%
10.7%€5.45€4.09n/a8
Dec ’24€3.52
€4.86
+38.2%
9.6%€5.63€4.22n/a8
Nov ’24€3.14
€5.19
+65.4%
9.1%€5.67€4.72€4.008
Oct ’24€3.74
€5.37
+43.5%
9.6%€6.38€4.56€3.969
Sep ’24€4.52
€5.37
+18.7%
9.6%€6.38€4.56€3.909
Aug ’24€6.35
€7.81
+23.0%
12.2%€9.01€6.31€3.189
Jul ’24€6.90
€8.26
+19.7%
11.2%€9.29€6.51€2.589
Jun ’24€7.55
€8.26
+9.4%
11.2%€9.29€6.51€2.529
May ’24€5.50
€8.34
+51.6%
15.1%€10.94€6.38€2.1210
Apr ’24€6.25
€8.53
+36.5%
13.5%€11.07€6.92€2.3410
Mar ’24€6.60
€8.86
+34.3%
16.5%€11.25€7.03€2.7410
Feb ’24€9.80
€11.26
+14.9%
9.0%€12.97€8.80€4.2410
Jan ’24€9.45
€11.15
+18.0%
10.6%€13.29€9.02€4.4410
Dec ’23€8.65
€11.60
+34.1%
11.9%€13.59€9.22€3.5210
Nov ’23€9.75
€16.63
+70.5%
14.5%€22.31€14.19€3.1410

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

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