Lightspeed Commerce Inc.

LSE:0A8V Stock Report

Market Cap: CA$3.8b

Lightspeed Commerce Valuation

Is 0A8V undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 0A8V when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0A8V (CA$25.53) is trading below our estimate of fair value (CA$99.6)

Significantly Below Fair Value: 0A8V is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0A8V?

Key metric: As 0A8V is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 0A8V. This is calculated by dividing 0A8V's market cap by their current revenue.
What is 0A8V's PS Ratio?
PS Ratio2.7x
SalesUS$1.01b
Market CapUS$2.69b

Price to Sales Ratio vs Peers

How does 0A8V's PS Ratio compare to its peers?

The above table shows the PS ratio for 0A8V vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average6.9x
BYIT Bytes Technology Group
5.4x11.0%UK£1.1b
GBG GB Group
3.4x6.9%UK£944.4m
CER Cerillion
12.3x10.6%UK£539.1m
ALFA Alfa Financial Software Holdings
6.3x9.6%UK£640.4m
0A8V Lightspeed Commerce
2.7x16.2%CA$3.8b

Price-To-Sales vs Peers: 0A8V is good value based on its Price-To-Sales Ratio (2.7x) compared to the peer average (6.9x).

Price to Sales Ratio vs Industry

How does 0A8V's PS Ratio compare vs other companies in the GB Software Industry?

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
RM. RM
0.4xn/aUS$83.60m
SWG Shearwater Group
0.4xn/aUS$10.92m
MBO MobilityOne
0.01xn/aUS$3.00m
CCS Crossword Cybersecurity
0.5xn/aUS$2.46m
0A8V 2.7xIndustry Avg. 2.4xNo. of Companies13PS0246810+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0A8V is expensive based on its Price-To-Sales Ratio (2.7x) compared to the UK Software industry average (2.4x).

Price to Sales Ratio vs Fair Ratio

What is 0A8V'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.

0A8V PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.7x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 0A8V's Price-To-Sales 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?

The above table shows the analyst 0A8V forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
CA$28.32
0%
19.7%CA$36.39CA$19.99n/a10
Nov ’25n/a
CA$26.92
0%
21.7%CA$35.23CA$19.76n/a10
Oct ’25CA$21.61
CA$26.92
+24.6%
21.7%CA$35.23CA$19.76n/a10
Sep ’25n/a
CA$27.83
0%
20.5%CA$35.56CA$19.94n/a9
Aug ’25CA$18.54
CA$29.27
+57.9%
16.7%CA$36.28CA$22.04n/a9
Jul ’25n/a
CA$29.30
0%
14.9%CA$35.87CA$22.18n/a9
Jun ’25CA$20.26
CA$29.30
+44.6%
14.9%CA$35.87CA$22.18n/a9
May ’25n/a
CA$29.10
0%
14.3%CA$36.01CA$25.48n/a8
Apr ’25n/a
CA$28.72
0%
14.0%CA$35.32CA$25.00n/a8
Mar ’25CA$18.08
CA$28.72
+58.9%
14.0%CA$35.32CA$25.00n/a8
Feb ’25CA$25.19
CA$31.95
+26.8%
16.6%CA$41.75CA$25.45n/a8
Jan ’25CA$27.00
CA$30.52
+13.0%
19.1%CA$41.76CA$23.51n/a8
Dec ’24n/a
CA$29.56
0%
25.1%CA$42.08CA$16.64n/a8
Nov ’24n/a
CA$32.03
0%
25.2%CA$44.70CA$23.36n/a8
Oct ’24n/a
CA$32.38
0%
22.8%CA$43.77CA$23.06CA$21.618
Sep ’24n/a
CA$32.93
0%
20.9%CA$43.70CA$23.02n/a8
Aug ’24n/a
CA$30.33
0%
24.5%CA$41.95CA$20.49CA$18.548
Jul ’24n/a
CA$30.47
0%
32.5%CA$49.05CA$20.61n/a8
Jun ’24n/a
CA$34.93
0%
37.7%CA$63.12CA$21.01CA$20.2610
May ’24n/a
CA$46.42
0%
70.3%CA$142.15CA$22.37n/a11
Apr ’24n/a
CA$46.38
0%
70.3%CA$142.01CA$22.35n/a11
Mar ’24CA$20.37
CA$46.22
+126.9%
70.2%CA$141.34CA$22.25CA$18.0811
Feb ’24CA$24.08
CA$47.69
+98.1%
66.2%CA$139.78CA$21.88CA$25.1911
Jan ’24n/a
CA$56.67
0%
64.1%CA$139.91CA$21.95CA$27.0011
Dec ’23CA$22.62
CA$56.67
+150.6%
64.1%CA$139.91CA$21.95n/a11
Nov ’23CA$26.95
CA$62.81
+133.1%
55.0%CA$143.07CA$33.92n/a11

Analyst Forecast: Target price is less than 20% higher than the current share price.

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