Inspur Digital Enterprise Technology Limited

DB:L1CC Stock Report

Market Cap: €559.5m

Inspur Digital Enterprise Technology Valuation

Is L1CC 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 L1CC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: L1CC (€0.47) is trading below our estimate of fair value (€0.59)

Significantly Below Fair Value: L1CC is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for L1CC?

Other financial metrics that can be useful for relative valuation.

L1CC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.4x
Enterprise Value/EBITDA25.9x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

How does L1CC's PE Ratio compare to its peers?

The above table shows the PE ratio for L1CC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.6x
MUM Mensch und Maschine Software
32.8x13.0%€972.5m
FAA Fabasoft
23.9x10.9%€212.4m
CLIQ Cliq Digital
3.3x12.0%€104.1m
OSP2 USU Software
34.3x39.0%€181.2m
L1CC Inspur Digital Enterprise Technology
21.6x38.0%€4.7b

Price-To-Earnings vs Peers: L1CC is good value based on its Price-To-Earnings Ratio (21.6x) compared to the peer average (23.6x).


Price to Earnings Ratio vs Industry

How does L1CC's PE Ratio compare vs other companies in the European Software Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a32.9%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a32.9%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: L1CC is good value based on its Price-To-Earnings Ratio (21.6x) compared to the European Software industry average (33.8x).


Price to Earnings Ratio vs Fair Ratio

What is L1CC'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.

L1CC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.6x
Fair PE Ratio41x

Price-To-Earnings vs Fair Ratio: L1CC is good value based on its Price-To-Earnings Ratio (21.6x) compared to the estimated Fair Price-To-Earnings Ratio (41x).


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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