IAR Systems Group Valuation

Q: What is the Fair Price of NC91 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

NC91 (€10.05) is trading below our estimate of [[fair value]] (€19.37)

Is NC91 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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 NC91 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow

Simply Wall St

€19.37

Fair Value

48.1% undervalued

Number of Analysts

Below Fair Value: NC91 (€10.05) is trading below our estimate of fair value (€19.37)

Significantly Below Fair Value: NC91 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NC91?

Key metric: As NC91 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for NC91. This is calculated by dividing NC91's market cap by their current revenue.
What is NC91's PS Ratio?
PS Ratio	2.8x
Sales	SEK 526.10m
Market Cap	SEK 1.49b

NC91 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	2.6x
Enterprise Value/EBITDA	11.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does NC91's PS Ratio compare to its peers?

The above table shows the PS ratio for NC91 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	1.8x
SJJ Serviceware	1.3x	8.7%	€129.2m
ESY Easy Software	2.3x	n/a	€116.0m
FAA Fabasoft	2.1x	9.8%	€175.7m
OSP2 USU Software	1.6x	7.7%	€216.8m
NC91 IAR Systems Group	2.8x	4.4%	€1.5b

Price-To-Sales vs Peers: NC91 is expensive based on its Price-To-Sales Ratio (2.8x) compared to the peer average (1.8x).

Price to Sales Ratio vs Industry

How does NC91's PS Ratio compare vs other companies in the DE Software Industry?

8 Companies	Price / Sales	Estimated Growth	Market Cap
CSH CENIT	0.3x	4.7%	US$64.29m
CLIQ Cliq Digital	0.1x	12.3%	US$28.23m
ISHA INTERSHOP Communications	0.7x	5.0%	US$27.07m
LSX LS telcom	0.4x	2.5%	US$18.88m

8 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: NC91 is expensive based on its Price-To-Sales Ratio (2.8x) compared to the German Software industry average (2.2x).

Price to Sales Ratio vs Fair Ratio

What is NC91'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.

NC91 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.8x
Fair PS Ratio	1x

Price-To-Sales vs Fair Ratio: NC91 is expensive based on its Price-To-Sales Ratio (2.8x) compared to the estimated Fair Price-To-Sales Ratio (1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Price Target

Consensus Narrative from 1 Analyst

€17.79

Fair Value

43.5% undervalued

Number of Analysts

Analyst Forecast: Insufficient data to show price forecast.

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Company Analysis and Financial Data Status

Data	Last Updated (UTC time)
Company Analysis	2025/01/08 13:00
End of Day Share Price	2025/01/08 00:00
Earnings	2024/09/30
Annual Earnings	2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

^* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

IAR Systems Group AB (publ) is covered by 3 analysts. 1 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

Analyst	Institution
Viktor Högberg	Danske Bank
Joachim Gunell	DNB Markets
Erik Haeggstrom	Pareto Securities