Assessing Amadeus IT Group (BME:AMS) Valuation After Strategic Hospitality Tech Partnership With Shiji

If you’re watching Amadeus IT Group (BME:AMS) after its latest move, you’re not alone. The company’s expanded collaboration with Shiji is a strategic attempt to tackle some of the hospitality industry’s trickiest tech pain points. By joining forces to integrate and cross-license their property management, point of sale, and reservation systems, Amadeus is aiming to offer hoteliers a one-stop shop for critical technology, which could reshape how hotels manage guest experience and operations.

This announcement comes at a time when Amadeus’s share price has struggled to generate strong momentum. Over the past year, the stock has climbed 5%, and longer-term investors have been rewarded with nearly 39% gains over three years. Yet, recent performance has softened, with a slip of 6% over the past month. For many investors, the big question is whether this alliance with Shiji is a turning point, especially given continued annual revenue and profit growth in the background.

So, is Amadeus now on sale, or does the current share price reflect all the good news on the horizon?

Most Popular Narrative: 13.4% Undervalued

According to the most widely followed analysis, Amadeus IT Group's shares are considered undervalued by over 13% based on future earnings and revenue growth forecasts.

"Expansion into hospitality, payments, and airport operations reduces reliance on airlines and positions the company for more stable and diversified earnings. Exposure to industry shifts, high expenditures, and volatile macroeconomic conditions threaten Amadeus' revenue, margins, and long-term growth prospects as competition and client power intensify."

Want to uncover the big thesis driving this bullish view? There is a secret mix of margin expansion, ambitious growth assumptions, and future profitability projections at play here. Discover how analysts think Amadeus could unlock value beyond its traditional business lines, plus which financial trends they believe will justify the stock’s higher price tag.

Result: Fair Value of €77.81 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent high R&D spending and exposure to travel sector downturns could undermine these upbeat growth assumptions if conditions become challenging.

Find out about the key risks to this Amadeus IT Group narrative.

Another View: Pricing Signals from Industry Comparisons

While analysts see upside based on future growth, looking at where Amadeus trades compared to the broader European hospitality sector shows that its shares are actually more expensive than the industry average. Which outlook is closer to reality?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Amadeus IT Group to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Amadeus IT Group Narrative

If you’d rather dig into the numbers yourself or believe there’s more to the story, it only takes a few minutes to craft your own perspective. Do it your way.

A great starting point for your Amadeus IT Group research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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