Softcat plc

DB:SF5 Stock Report

Market Cap: €3.7b

Softcat Valuation

Is SF5 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-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 SF5 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SF5 (€17.7) is trading below our estimate of fair value (€18.95)

Significantly Below Fair Value: SF5 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 SF5?

Key metric: As SF5 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SF5. This is calculated by dividing SF5's market cap by their current earnings.
What is SF5's PE Ratio?
PE Ratio25.5x
EarningsUK£119.04m
Market CapUK£3.04b

Price to Earnings Ratio vs Peers

How does SF5's PE Ratio compare to its peers?

The above table shows the PE ratio for SF5 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19x
BC8 Bechtle
15.5x9.4%€3.9b
SANT Kontron
13.8x19.0%€1.2b
NA9 Nagarro
20.3x17.1%€1.1b
YSN secunet Security Networks
26.6x8.5%€734.9m
SF5 Softcat
25.5x8.6%€3.0b

Price-To-Earnings vs Peers: SF5 is expensive based on its Price-To-Earnings Ratio (25.5x) compared to the peer average (19x).

Price to Earnings Ratio vs Industry

How does SF5's PE Ratio compare vs other companies in the DE IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
SF5 25.5xIndustry Avg. 17.3xNo. of Companies4PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SF5 is expensive based on its Price-To-Earnings Ratio (25.5x) compared to the European IT industry average (17.3x).

Price to Earnings Ratio vs Fair Ratio

What is SF5'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.

SF5 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.5x
Fair PE Ratio25.8x

Price-To-Earnings vs Fair Ratio: SF5 is good value based on its Price-To-Earnings Ratio (25.5x) compared to the estimated Fair Price-To-Earnings Ratio (25.8x).

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 SF5 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€17.70
€20.68
+16.9%
12.2%€24.16€15.83n/a14
Dec ’25€18.80
€20.46
+8.8%
12.8%€24.00€15.72n/a14
Nov ’25€20.00
€20.51
+2.5%
12.8%€24.06€15.76n/a14
Oct ’25€18.50
€19.59
+5.9%
13.0%€22.96€14.64n/a14
Sep ’25€18.40
€19.59
+6.4%
13.0%€22.96€14.64n/a14
Aug ’25€19.00
€19.83
+4.3%
13.0%€23.29€14.85n/a14
Jul ’25€21.00
€20.08
-4.4%
13.1%€23.13€14.75n/a14
Jun ’25€19.00
€19.63
+3.3%
12.5%€23.03€14.69n/a15
May ’25€18.30
€19.07
+4.2%
12.3%€22.73€14.50n/a14
Apr ’25€18.00
€18.75
+4.2%
10.4%€21.06€14.62n/a15
Mar ’25€16.90
€18.21
+7.8%
11.9%€21.06€14.27n/a15
Feb ’25€16.90
€18.25
+8.0%
13.3%€23.59€14.32n/a14
Jan ’25€15.30
€17.87
+16.8%
14.8%€23.43€13.40n/a14
Dec ’24€14.50
€17.56
+21.1%
15.5%€23.09€13.21€18.8014
Nov ’24€14.30
€17.74
+24.1%
14.6%€23.11€13.22€20.0013
Oct ’24€16.70
€17.86
+6.9%
15.2%€23.33€13.12€18.5012
Sep ’24€17.10
€17.86
+4.4%
15.2%€23.43€13.17€18.4012
Aug ’24€17.20
€17.86
+3.8%
15.2%€23.43€13.17€19.0012
Jul ’24€16.20
€17.59
+8.6%
16.8%€23.38€13.15€21.0011
Jun ’24€15.90
€17.43
+9.6%
15.9%€23.25€13.07€19.0012
May ’24€14.80
€17.17
+16.0%
15.9%€22.90€12.87€18.3012
Apr ’24€14.50
€17.08
+17.8%
16.0%€22.83€12.84€18.0012
Mar ’24€13.60
€16.91
+24.3%
16.7%€22.76€12.11€16.9012
Feb ’24€13.70
€16.94
+23.6%
16.7%€22.79€12.13€16.9012
Jan ’24€13.10
€17.55
+34.0%
16.0%€23.41€13.40€15.3011
Dec ’23€14.80
€17.35
+17.3%
16.1%€23.19€13.27€14.5011

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/23 06:16
End of Day Share Price 2024/12/20 00:00
Earnings2024/07/31
Annual Earnings2024/07/31

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.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* 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

Softcat plc is covered by 23 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
James ZarembaBarclays
Alexander James ShortBerenberg
Benjamin MayBerenberg