Software Aktiengesellschaft

DB:SOW Stock Report

Market Cap: €2.6b

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This company may still be operating, however this listing is no longer active. Find out why through their latest events.

Software Valuation

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

Below Fair Value: SOW (€37.46) is trading below our estimate of fair value (€41.23)

Significantly Below Fair Value: SOW 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 SOW?

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

The above table shows the Price to Sales ratio for SOW. This is calculated by dividing SOW's market cap by their current revenue.
What is SOW's PS Ratio?
PS Ratio2.6x
Sales€1.00b
Market Cap€2.61b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SOW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2x
SUSE SUSE
3x7.4%€1.9b
IXX init innovation in traffic systems
1.5x13.2%€358.5m
IVU IVU Traffic Technologies
1.8xn/a€234.6m
EXL Exasol
1.7x13.0%€61.4m
SOW Software
2.6x5.2%€2.6b

Price-To-Sales vs Peers: SOW is expensive based on its Price-To-Sales Ratio (2.6x) compared to the peer average (1.9x).

Price to Sales Ratio vs Industry

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

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
CSH CENIT
0.3x5.2%US$73.23m
ISHA INTERSHOP Communications
0.7x5.1%US$29.72m
CLIQ Cliq Digital
0.08x13.2%US$24.83m
LSX LS telcom
0.5x5.0%US$21.33m
SOW 2.6xIndustry Avg. 2.2xNo. of Companies7PS02.85.68.411.214+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SOW is expensive based on its Price-To-Sales Ratio (2.6x) compared to the German Software industry average (1.8x).

Price to Sales Ratio vs Fair Ratio

What is SOW'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.

SOW PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.6x
Fair PS Ratio4.7x

Price-To-Sales vs Fair Ratio: SOW is good value based on its Price-To-Sales Ratio (2.6x) compared to the estimated Fair Price-To-Sales Ratio (4.7x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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