The Descartes Systems Group Inc.

DB:DC2 Stock Report

Market Cap: €9.8b

Descartes Systems Group Valuation

Is DC2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • 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 DC2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DC2 (€113.4) is trading above our estimate of fair value (€97.54)

Significantly Below Fair Value: DC2 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for DC2?

Key metric: As DC2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DC2. This is calculated by dividing DC2's market cap by their current earnings.
What is DC2's PE Ratio?
PE Ratio75.4x
EarningsUS$137.74m
Market CapUS$10.21b

Price to Earnings Ratio vs Peers

How does DC2's PE Ratio compare to its peers?

The above table shows the PE ratio for DC2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.7x
NEM Nemetschek
64.5x18.5%€11.0b
TMV TeamViewer
14.3x11.1%€1.7b
AOF ATOSS Software
42.9x7.7%€1.9b
MUM Mensch und Maschine Software
29.1x14.0%€929.5m
DC2 Descartes Systems Group
75.4x15.9%€14.5b

Price-To-Earnings vs Peers: DC2 is expensive based on its Price-To-Earnings Ratio (75.4x) compared to the peer average (37.7x).


Price to Earnings Ratio vs Industry

How does DC2's PE Ratio compare vs other companies in the European Software Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
DC2 75.4xIndustry Avg. 26.0xNo. of Companies18PE020406080100+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DC2 is expensive based on its Price-To-Earnings Ratio (75.4x) compared to the European Software industry average (27.2x).


Price to Earnings Ratio vs Fair Ratio

What is DC2'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.

DC2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio75.4x
Fair PE Ratio31.4x

Price-To-Earnings vs Fair Ratio: DC2 is expensive based on its Price-To-Earnings Ratio (75.4x) compared to the estimated Fair Price-To-Earnings Ratio (31.4x).


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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