TXT e-solutions Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: TXE (€31.1) is trading below our estimate of fair value (€73.04)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TXE. This is calculated by dividing TXE's market cap by their current earnings.
What is TXE's PE Ratio?
PE Ratio21.6x
Earnings€17.68m
Market Cap€381.91m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TXE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.8x
FAA Fabasoft
21.3x3.3%€191.1m
OSP2 USU Software
38.3x39.7%€225.8m
MUM Mensch und Maschine Software
28.1x14.0%€902.3m
AOF ATOSS Software
43.4x7.8%€1.9b
TXE TXT e-solutions
21.6x20.7%€381.9m

Price-To-Earnings vs Peers: TXE is good value based on its Price-To-Earnings Ratio (21.6x) compared to the peer average (32.6x).


Price to Earnings Ratio vs Industry

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

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TXE 21.6xIndustry Avg. 28.2xNo. of Companies17PE020406080100+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TXE is good value based on its Price-To-Earnings Ratio (21.6x) compared to the European Software industry average (28.8x).


Price to Earnings Ratio vs Fair Ratio

What is TXE'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.

TXE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.6x
Fair PE Ratio21.5x

Price-To-Earnings vs Fair Ratio: TXE is expensive based on its Price-To-Earnings Ratio (21.6x) compared to the estimated Fair Price-To-Earnings Ratio (21.5x).


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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