GMO internet group, Inc.

DB:IQ3 Stock Report

Market Cap: €1.7b

GMO internet group Valuation

Is IQ3 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-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 IQ3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IQ3 (€15.9) is trading below our estimate of fair value (€38.63)

Significantly Below Fair Value: IQ3 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IQ3?

Key metric: As IQ3 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for IQ3. This is calculated by dividing IQ3's market cap by their current earnings.
What is IQ3's PE Ratio?
PE Ratio18.7x
EarningsJP¥14.77b
Market CapJP¥276.07b

Price to Earnings Ratio vs Peers

How does IQ3's PE Ratio compare to its peers?

The above table shows the PE ratio for IQ3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.7x
IOS IONOS Group
21.6x18.9%€3.2b
NA9 Nagarro
24.1x17.1%€1.3b
SANT Kontron
12.2x19.1%€1.0b
YSN secunet Security Networks
25.1x8.5%€693.5m
IQ3 GMO internet group
18.7x16.0%€276.1b

Price-To-Earnings vs Peers: IQ3 is good value based on its Price-To-Earnings Ratio (18.7x) compared to the peer average (21.2x).

Price to Earnings Ratio vs Industry

How does IQ3's PE Ratio compare vs other companies in the DE IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
IQ3 18.7xIndustry Avg. 17.7xNo. of Companies4PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IQ3 is expensive based on its Price-To-Earnings Ratio (18.7x) compared to the European IT industry average (17.9x).

Price to Earnings Ratio vs Fair Ratio

What is IQ3'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.

IQ3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.7x
Fair PE Ratio25x

Price-To-Earnings vs Fair Ratio: IQ3 is good value based on its Price-To-Earnings Ratio (18.7x) compared to the estimated Fair Price-To-Earnings Ratio (25x).

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 IQ3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€15.90
€18.34
+15.3%
6.0%€20.35€17.06n/a5
Nov ’25€15.40
€18.21
+18.3%
6.0%€20.21€16.94n/a5
Oct ’25€15.30
€18.63
+21.8%
6.0%€20.67€17.33n/a5
Sep ’25€15.40
€18.63
+21.0%
6.0%€20.67€17.33n/a5
Aug ’25€14.30
€16.82
+17.6%
8.8%€19.15€14.50n/a5
Jul ’25€13.70
€17.19
+25.5%
9.0%€19.84€15.03n/a5
Jun ’25€14.40
€16.96
+17.8%
9.0%€19.58€14.83n/a5
May ’25€15.30
€18.15
+18.6%
10.5%€20.80€15.76n/a5
Apr ’25€16.40
€18.15
+10.7%
10.5%€20.80€15.76n/a5
Mar ’25€16.50
€17.91
+8.5%
10.5%€20.53€15.55n/a5
Feb ’25€16.50
€17.52
+6.2%
9.8%€20.79€15.75n/a5
Jan ’25€16.10
€16.95
+5.3%
2.9%€17.32€16.11n/a4
Dec ’24€14.40
€16.72
+16.1%
2.6%€17.03€15.84n/a5
Nov ’24€13.60
€16.71
+22.9%
2.8%€17.15€15.95€15.405
Oct ’24€14.40
€17.63
+22.4%
11.0%€21.85€16.02€15.306
Sep ’24€14.80
€17.95
+21.3%
11.1%€21.89€16.05€15.406
Aug ’24€17.60
€18.68
+6.1%
8.6%€21.92€17.15€14.306
Jul ’24€17.20
€18.68
+8.6%
8.6%€21.92€17.15€13.706
Jun ’24€16.80
€21.00
+25.0%
11.3%€25.15€18.86€14.407
May ’24€18.00
€21.00
+16.6%
11.3%€25.15€18.86€15.307
Apr ’24€17.40
€21.22
+22.0%
11.9%€25.59€18.91€16.407
Mar ’24€17.40
€20.70
+19.0%
14.2%€25.05€16.01€16.507
Feb ’24€17.90
€21.07
+17.7%
14.2%€25.51€16.30€16.507
Jan ’24€17.20
€21.59
+25.5%
11.0%€25.52€18.85€16.107
Dec ’23€17.50
€20.90
+19.5%
12.1%€25.27€17.55€14.408
Nov ’23€17.50
€20.44
+16.8%
11.4%€24.42€16.96€13.609

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

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