Proact IT Group AB (publ)

BATS-CHIXE:PACTS Stock Report

Market Cap: SEK 4.0b

Proact IT Group Valuation

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

Below Fair Value: PACTS (SEK161.6) is trading below our estimate of fair value (SEK257.8)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PACTS. This is calculated by dividing PACTS's market cap by their current earnings.
What is PACTS's PE Ratio?
PE Ratio17.3x
EarningsSEK 233.55m
Market CapSEK 4.05b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PACTS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.7x
FDM FDM Group (Holdings)
11.3x-7.3%UK£342.6m
ECK Eckoh
33.7x8.7%UK£153.0m
CLBS Celebrus Technologies
29.8x10.3%UK£120.2m
KNOS Kainos Group
20.1x1.7%UK£1.0b
PACTS Proact IT Group
17.3x3.5%SEK 4.0b

Price-To-Earnings vs Peers: PACTS is good value based on its Price-To-Earnings Ratio (17.3x) compared to the peer average (22.3x).

Price to Earnings Ratio vs Industry

How does PACTS's PE Ratio compare vs other companies in the European IT Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
No. of Companies27PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PACTS is good value based on its Price-To-Earnings Ratio (17.3x) compared to the European IT industry average (19.3x).

Price to Earnings Ratio vs Fair Ratio

What is PACTS'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.

PACTS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate PACTS's Price-To-Earnings Fair Ratio for valuation analysis.

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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