NEC Valuation

Is NEC1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 NEC1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NEC1 (€82.12) is trading below our estimate of fair value (€132.01)

Significantly Below Fair Value: NEC1 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for NEC1?

Other financial metrics that can be useful for relative valuation.

NEC1 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/Revenue1.1x
Enterprise Value/EBITDA10.2x
PEG Ratio2.1x

Price to Earnings Ratio vs Peers

How does NEC1's PE Ratio compare to its peers?

The above table shows the PE ratio for NEC1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.1x
BC8 Bechtle
17.9x8.7%€4.7b
SANT Kontron
13.2x19.5%€1.0b
COK Cancom
22.2x12.7%€925.2m
NA9 Nagarro
23.1x18.9%€1.3b
24.1x11.7%€3.6t

Price-To-Earnings vs Peers: NEC1 is expensive based on its Price-To-Earnings Ratio (24.1x) compared to the peer average (19.1x).


Price to Earnings Ratio vs Industry

How does NEC1's PE Ratio compare vs other companies in the DE IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: NEC1 is expensive based on its Price-To-Earnings Ratio (24.1x) compared to the European IT industry average (19x).


Price to Earnings Ratio vs Fair Ratio

What is NEC1'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.

NEC1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.1x
Fair PE Ratio33x

Price-To-Earnings vs Fair Ratio: NEC1 is good value based on its Price-To-Earnings Ratio (24.1x) compared to the estimated Fair Price-To-Earnings Ratio (33x).


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 NEC1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€82.12
€92.86
+13.1%
7.3%€102.70€77.80n/a11
Oct ’25€88.70
€92.86
+4.7%
7.3%€102.70€77.80n/a11
Sep ’25€79.10
€90.27
+14.1%
8.7%€102.59€77.72n/a11
Aug ’25€76.70
€85.26
+11.2%
11.5%€99.58€69.40n/a11
Jul ’25€77.16
€77.63
+0.6%
8.9%€94.42€67.86n/a11
Jun ’25€67.82
€74.23
+9.5%
8.8%€82.42€58.87n/a11
May ’25€67.80
€70.48
+4.0%
11.2%€82.49€56.79n/a11
Apr ’25€68.50
€67.65
-1.2%
11.9%€78.69€49.57n/a11
Mar ’25€64.50
€64.01
-0.8%
12.4%€77.98€49.12n/a12
Feb ’25€60.00
€59.95
-0.08%
14.7%€79.87€44.65n/a12
Jan ’25€52.50
€57.97
+10.4%
13.0%€71.37€45.01n/a12
Dec ’24€52.50
€53.67
+2.2%
10.9%€61.98€43.38n/a12
Nov ’24€43.80
€52.42
+19.7%
12.1%€62.34€41.77n/a13
Oct ’24€52.00
€52.95
+1.8%
12.3%€63.14€42.30€88.7013
Sep ’24€49.00
€52.23
+6.6%
12.8%€63.10€42.27€79.1013
Aug ’24€45.20
€50.45
+11.6%
12.6%€64.29€43.07€76.7013
Jul ’24€44.00
€46.85
+6.5%
14.7%€62.18€30.44€77.1613
Jun ’24€44.20
€47.86
+8.3%
15.9%€64.28€31.47€67.8213
May ’24€36.00
€42.38
+17.7%
17.5%€63.64€31.16€67.8013
Apr ’24€34.80
€43.81
+25.9%
17.3%€66.27€32.44€68.5013
Mar ’24€33.00
€44.19
+33.9%
17.1%€66.12€32.37€64.5013
Feb ’24€34.00
€45.30
+33.2%
17.4%€67.86€32.52€60.0013
Jan ’24€32.60
€45.53
+39.7%
17.5%€68.05€32.61€52.5013
Dec ’23€34.20
€45.42
+32.8%
17.3%€67.40€32.30€52.5013
Nov ’23€33.00
€47.61
+44.3%
16.9%€67.89€32.53€43.8014
Oct ’23€33.00
€47.61
+44.3%
16.9%€67.89€32.53€52.0014

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


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