Linedata Services Valuation

Q: What is the Fair Price of LN4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

LN4 (€80) is trading below our estimate of [[fair value]] (€108)

Is LN4 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

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 LN4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LN4 (€80) is trading below our estimate of fair value (€108)

Significantly Below Fair Value: LN4 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LN4?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for LN4. This is calculated by dividing LN4's market cap by their current preferred multiple.
What is LN4's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	€400.75m

LN4 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/Revenue	2.5x
Enterprise Value/EBITDA	11.7x
PEG Ratio	4x

Price to Earnings Ratio vs Peers

How does LN4's PE Ratio compare to its peers?

The above table shows the PE ratio for LN4 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	37.8x
OSP2 USU Software	37.9x	39.7%	€223.8m
MUM Mensch und Maschine Software	28.2x	14.0%	€900.6m
FAA Fabasoft	18.8x	8.9%	€161.7m
BSS Beta Systems Software	66.2x	27.7%	€121.4m
LN4 Linedata Services	14.5x	3.6%	€400.7m

Price-To-Earnings vs Peers: LN4 is good value based on its Price-To-Earnings Ratio (14.5x) compared to the peer average (37.8x).

Price to Earnings Ratio vs Industry

How does LN4's PE Ratio compare vs other companies in the DE Software Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	39.5%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	39.5%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: LN4 is good value based on its Price-To-Earnings Ratio (14.5x) compared to the European Software industry average (28.7x).

Price to Earnings Ratio vs Fair Ratio

What is LN4'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.

LN4 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.5x
Fair PE Ratio	18.6x

Price-To-Earnings vs Fair Ratio: LN4 is good value based on its Price-To-Earnings Ratio (14.5x) compared to the estimated Fair Price-To-Earnings Ratio (18.6x).

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 LN4 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	€80.00	€77.60 -3.0%	1.8%	€79.00	€76.20	n/a	2
Oct ’25	€79.00	€74.85 -5.3%	0.2%	€75.00	€74.70	n/a	2
Sep ’25	€70.60	€73.75 +4.5%	1.7%	€75.00	€72.50	n/a	2
Aug ’25	€71.20	€73.75 +3.6%	1.7%	€75.00	€72.50	n/a	2
Jul ’25	€67.20	€74.05 +10.2%	1.3%	€75.00	€73.10	n/a	2
Jun ’25	€73.00	€74.05 +1.4%	1.3%	€75.00	€73.10	n/a	2
May ’25	€72.80	€74.05 +1.7%	1.3%	€75.00	€73.10	n/a	2
Apr ’25	€67.80	€67.60 -0.3%	0.6%	€68.00	€67.20	n/a	2
Mar ’25	€69.60	€67.60 -2.9%	0.6%	€68.00	€67.20	n/a	2
Feb ’25	€56.60	€57.85 +2.2%	1.5%	€58.70	€57.00	n/a	2
Jan ’25	€54.80	€57.85 +5.6%	1.5%	€58.70	€57.00	n/a	2
Dec ’24	€52.60	€57.85 +10.0%	1.5%	€58.70	€57.00	n/a	2
Nov ’24	€51.00	€60.35 +18.3%	2.7%	€62.00	€58.70	€80.00	2
Oct ’24	€53.60	€59.90 +11.8%	3.5%	€62.00	€57.80	€79.00	2
Sep ’24	€50.40	€60.95 +20.9%	1.7%	€62.00	€59.90	€70.60	2
Aug ’24	€56.40	€59.95 +6.3%	0.08%	€60.00	€59.90	€71.20	2
Jul ’24	€54.40	€52.70 -3.1%	1.3%	€53.40	€52.00	€67.20	2
Jun ’24	€47.80	€52.70 +10.3%	1.3%	€53.40	€52.00	€73.00	2
May ’24	€44.60	€51.55 +15.6%	0.9%	€52.00	€51.10	€72.80	2
Apr ’24	€44.20	€51.55 +16.6%	0.9%	€52.00	€51.10	€67.80	2
Mar ’24	€45.20	€48.55 +7.4%	5.3%	€51.10	€46.00	€69.60	2
Feb ’24	€47.70	€47.35 -0.7%	2.9%	€48.70	€46.00	€56.60	2
Jan ’24	€45.00	€47.35 +5.2%	2.9%	€48.70	€46.00	€54.80	2
Dec ’23	€44.90	€47.35 +5.5%	2.9%	€48.70	€46.00	€52.60	2
Nov ’23	€46.00	€43.35 -5.8%	12.3%	€48.70	€38.00	€51.00	2

Analyst Forecast: Target price is lower than the current share price.