We’ve recently updated our valuation analysis.

Sopra Steria Group Valuation

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

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SOP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA7.8x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

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

SOP PE Ratio vs Peers
The above table shows the PE ratio for SOP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average24.2x
ATE Alten
15x6.7%€3.9b
EXN Exclusive Networks
50.7x27.7%€1.5b
WAVE Wavestone
17.3x4.9%€883.4m
SII SII
14x7.2%€829.8m
SOP Sopra Steria Group
12.3x14.3%€2.6b

Price-To-Earnings vs Peers: SOP is good value based on its Price-To-Earnings Ratio (12.3x) compared to the peer average (24.2x).


Price to Earnings Ratio vs Industry

How does SOP's PE Ratio compare vs other companies in the FR IT Industry?

Price-To-Earnings vs Industry: SOP is good value based on its Price-To-Earnings Ratio (12.3x) compared to the French IT industry average (16x)


Price to Earnings Ratio vs Fair Ratio

What is SOP'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.

SOP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.3x
Fair PE Ratio29.1x

Price-To-Earnings vs Fair Ratio: SOP is good value based on its Price-To-Earnings Ratio (12.3x) compared to the estimated Fair Price-To-Earnings Ratio (29.1x).


Share Price vs Fair Value

What is the Fair Price of SOP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SOP (€130.5) is trading below our estimate of fair value (€217.48)

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


Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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