Kingdee International Software Group Company Limited

DB:KDID Stock Report

Market Cap: €3.8b

Kingdee International Software Group Valuation

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

Below Fair Value: KDID (€104) is trading below our estimate of fair value (€439.62)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for KDID. This is calculated by dividing KDID's market cap by their current revenue.
What is KDID's PS Ratio?
PS Ratio4.8x
SalesCN¥5.98b
Market CapCN¥28.99b

Price to Sales Ratio vs Peers

How does KDID's PS Ratio compare to its peers?

The above table shows the PS ratio for KDID vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average13.8x
NB2 Northern Data
28.5x31.5%€2.3b
TMV TeamViewer
2.7x6.5%€1.8b
AOF ATOSS Software
11.4x12.7%€1.9b
NEM Nemetschek
12.5x14.1%€11.5b
KDID Kingdee International Software Group
4.8x14.1%€31.1b

Price-To-Sales vs Peers: KDID is good value based on its Price-To-Sales Ratio (4.8x) compared to the peer average (14x).

Price to Sales Ratio vs Industry

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

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
CSH CENIT
0.4x5.2%US$73.94m
CLIQ Cliq Digital
0.09x13.2%US$25.72m
LSX LS telcom
0.5x5.0%US$21.11m
IVX InVision
0.6xn/aUS$9.54m
KDID 4.8xIndustry Avg. 2.2xNo. of Companies7PS02.44.87.29.612+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: KDID is expensive based on its Price-To-Sales Ratio (4.8x) compared to the German Software industry average (1.8x).

Price to Sales Ratio vs Fair Ratio

What is KDID'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.

KDID PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4.8x
Fair PS Ratio5.8x

Price-To-Sales vs Fair Ratio: KDID is good value based on its Price-To-Sales Ratio (4.8x) compared to the estimated Fair Price-To-Sales Ratio (5.8x).

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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