Technology One Limited

DB:RW8 Stock Report

Market Cap: €5.9b

Technology One Valuation

Is RW8 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • 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 RW8 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RW8 (€18.5) is trading above our estimate of fair value (€14.02)

Significantly Below Fair Value: RW8 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RW8?

Key metric: As RW8 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RW8. This is calculated by dividing RW8's market cap by their current earnings.
What is RW8's PE Ratio?
PE Ratio81.3x
EarningsAU$118.01m
Market CapAU$9.60b

Price to Earnings Ratio vs Peers

How does RW8's PE Ratio compare to its peers?

The above table shows the PE ratio for RW8 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.9x
NEM Nemetschek
66.9x18.6%€11.4b
TMV TeamViewer
14.7x11.0%€1.7b
AOF ATOSS Software
42.1x7.8%€1.8b
MUM Mensch und Maschine Software
28x14.0%€893.8m
RW8 Technology One
81.3x15.4%€9.6b

Price-To-Earnings vs Peers: RW8 is expensive based on its Price-To-Earnings Ratio (81.3x) compared to the peer average (37.9x).

Price to Earnings Ratio vs Industry

How does RW8's PE Ratio compare vs other companies in the European Software Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
RW8 81.3xIndustry Avg. 28.5xNo. of Companies17PE020406080100+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RW8 is expensive based on its Price-To-Earnings Ratio (81.3x) compared to the European Software industry average (28.3x).

Price to Earnings Ratio vs Fair Ratio

What is RW8'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.

RW8 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio81.3x
Fair PE Ratio29.1x

Price-To-Earnings vs Fair Ratio: RW8 is expensive based on its Price-To-Earnings Ratio (81.3x) compared to the estimated Fair Price-To-Earnings Ratio (29.1x).

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 RW8 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€18.50
€15.64
-15.5%
25.8%€21.57€8.94n/a17
Nov ’25€14.40
€12.38
-14.0%
20.7%€17.86€8.93n/a17
Oct ’25€14.70
€12.06
-17.9%
20.1%€17.71€8.86n/a17
Sep ’25€13.80
€11.75
-14.9%
18.9%€17.47€8.74n/a17
Aug ’25€12.60
€11.34
-10.0%
14.4%€14.47€8.74n/a17
Jul ’25€11.10
€10.92
-1.6%
10.0%€12.76€9.03n/a17
Jun ’25€10.70
€10.67
-0.3%
9.2%€12.55€8.88n/a17
May ’25€9.65
€9.94
+3.0%
9.4%€11.23€8.50n/a15
Apr ’25€10.00
€9.87
-1.3%
9.4%€11.15€8.44n/a15
Mar ’25€9.90
€10.06
+1.6%
9.0%€11.28€8.64n/a15
Feb ’25€9.30
€10.06
+8.1%
9.0%€11.28€8.64n/a15
Jan ’25€9.40
€9.87
+5.0%
10.0%€11.21€8.03n/a16
Dec ’24€9.10
€9.87
+8.5%
10.0%€11.21€8.03n/a16
Nov ’24€8.55
€9.38
+9.7%
12.3%€10.95€7.54€14.4014
Oct ’24€9.40
€9.52
+1.3%
12.3%€11.10€7.64€14.7014
Sep ’24€9.20
€9.52
+3.5%
14.2%€11.25€6.89€13.8014
Aug ’24€9.45
€9.52
+0.8%
14.2%€11.25€6.89€12.6014
Jul ’24€9.45
€9.40
-0.6%
14.5%€11.21€6.86€11.1013
Jun ’24€9.85
€9.23
-6.3%
13.7%€11.01€6.80€10.7013
May ’24€8.95
€7.98
-10.8%
11.7%€9.68€6.62€9.6512
Apr ’24€8.85
€8.13
-8.2%
10.8%€9.56€6.78€10.0012
Mar ’24€9.30
€8.62
-7.3%
10.8%€10.14€7.20€9.9012
Feb ’24€9.30
€8.62
-7.3%
10.8%€10.14€7.20€9.3012
Jan ’24€8.30
€8.30
+0.04%
9.8%€9.18€6.99€9.4012
Dec ’23€8.85
€8.21
-7.2%
10.9%€9.26€6.24€9.1012
Nov ’23€7.85
€7.50
-4.5%
10.0%€9.24€6.22€8.5512

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

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