Iress Limited

DB:BRF Stock Report

Market Cap: €1.1b

Iress Valuation

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

Below Fair Value: BRF (€5.8) is trading below our estimate of fair value (€11.21)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BRF. This is calculated by dividing BRF's market cap by their current earnings.
What is BRF's PE Ratio?
PE Ratio87x
EarningsAU$19.59m
Market CapAU$1.70b

Price to Earnings Ratio vs Peers

How does BRF's PE Ratio compare to its peers?

The above table shows the PE ratio for BRF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31x
MUM Mensch und Maschine Software
28.1x14.0%€897.2m
TMV TeamViewer
15x11.1%€1.8b
AOF ATOSS Software
43.2x7.8%€1.9b
OSP2 USU Software
37.8x39.7%€226.8m
BRF Iress
87x29.6%€1.7b

Price-To-Earnings vs Peers: BRF is expensive based on its Price-To-Earnings Ratio (87x) compared to the peer average (30.9x).

Price to Earnings Ratio vs Industry

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

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
BRF 87.0xIndustry Avg. 28.1xNo. of Companies20PE020406080100+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BRF is expensive based on its Price-To-Earnings Ratio (87x) compared to the European Software industry average (28.1x).

Price to Earnings Ratio vs Fair Ratio

What is BRF'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.

BRF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio87x
Fair PE Ratio26.4x

Price-To-Earnings vs Fair Ratio: BRF is expensive based on its Price-To-Earnings Ratio (87x) compared to the estimated Fair Price-To-Earnings Ratio (26.4x).

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 BRF forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€5.80
€6.33
+9.2%
8.5%€7.26€5.60n/a9
Nov ’25€5.85
€6.43
+9.9%
8.5%€7.37€5.68n/a9
Oct ’25€6.15
€6.19
+0.7%
10.6%€7.25€4.96n/a10
Sep ’25€5.85
€6.19
+5.9%
10.6%€7.25€4.96n/a10
Aug ’25€6.30
€5.97
-5.2%
10.7%€6.84€4.96n/a10
Jul ’25€4.86
€5.61
+15.5%
8.1%€6.61€5.02n/a10
Jun ’25€4.82
€5.61
+16.5%
8.1%€6.61€5.02n/a10
May ’25€5.15
€5.45
+5.8%
8.4%€6.52€4.95n/a10
Apr ’25€4.94
€5.45
+10.3%
8.4%€6.52€4.95n/a10
Mar ’25€4.72
€5.35
+13.4%
9.0%€6.55€4.85n/a10
Feb ’25€4.86
€5.37
+10.4%
11.2%€6.89€4.65n/a10
Jan ’25€4.98
€5.41
+8.5%
11.7%€7.00€4.73n/a10
Dec ’24€4.40
€5.46
+24.1%
12.7%€6.99€4.72n/a8
Nov ’24€3.00
€4.97
+65.6%
20.2%€6.82€3.40€5.859
Oct ’24€3.54
€4.95
+39.9%
20.4%€6.85€3.38€6.159
Sep ’24€3.82
€4.95
+29.6%
20.4%€6.85€3.38€5.859
Aug ’24€6.25
€6.60
+5.6%
13.1%€8.22€5.64€6.309
Jul ’24€6.20
€6.58
+6.1%
13.1%€8.19€5.62€4.869
Jun ’24€6.30
€6.58
+4.4%
13.1%€8.19€5.62€4.829
May ’24€6.15
€6.63
+7.9%
13.5%€8.18€5.62€5.158
Apr ’24€6.10
€7.00
+14.7%
16.1%€9.01€5.92€4.948
Mar ’24€5.85
€7.00
+19.6%
16.1%€9.01€5.92€4.728
Feb ’24€6.20
€7.75
+25.1%
11.0%€8.96€6.53€4.868
Jan ’24€6.05
€7.69
+27.1%
11.4%€9.05€6.50€4.989
Dec ’23€6.25
€7.69
+23.0%
11.4%€9.05€6.50€4.409
Nov ’23€6.60
€7.89
+19.5%
10.4%€9.11€6.87€3.008

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

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