New Relic, Inc.

LSE:0K79 Stock Report

Market Cap: US$6.2b

This company listing is no longer active

This company may still be operating, however this listing is no longer active. Find out why through their latest events.

New Relic Valuation

Is 0K79 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 0K79 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0K79 ($86.96) is trading below our estimate of fair value ($157.19)

Significantly Below Fair Value: 0K79 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0K79?

Key metric: As 0K79 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 0K79. This is calculated by dividing 0K79's market cap by their current revenue.
What is 0K79's PS Ratio?
PS Ratio6.4x
SalesUS$967.64m
Market CapUS$6.18b

Price to Sales Ratio vs Peers

How does 0K79's PS Ratio compare to its peers?

The above table shows the PS ratio for 0K79 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5.2x
SGE Sage Group
5.6x8.0%UK£13.0b
GBG GB Group
3.4x6.9%UK£949.0m
BYIT Bytes Technology Group
5.3x11.0%UK£1.1b
ALFA Alfa Financial Software Holdings
6.4x9.6%UK£649.3m
0K79 New Relic
6.4x13.6%US$6.2b

Price-To-Sales vs Peers: 0K79 is expensive based on its Price-To-Sales Ratio (6.4x) compared to the peer average (4.4x).

Price to Sales Ratio vs Industry

How does 0K79's PS Ratio compare vs other companies in the GB Software Industry?

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
RM. RM
0.3xn/aUS$80.42m
SWG Shearwater Group
0.4xn/aUS$10.01m
MBO MobilityOne
0.01xn/aUS$3.00m
CCS Crossword Cybersecurity
0.5xn/aUS$2.46m
0K79 6.4xIndustry Avg. 2.4xNo. of Companies12PS0246810+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0K79 is expensive based on its Price-To-Sales Ratio (6.4x) compared to the UK Software industry average (2.5x).

Price to Sales Ratio vs Fair Ratio

What is 0K79'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.

0K79 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio6.4x
Fair PS Ratio7.7x

Price-To-Sales vs Fair Ratio: 0K79 is good value based on its Price-To-Sales Ratio (6.4x) compared to the estimated Fair Price-To-Sales Ratio (7.7x).

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 0K79 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Nov ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Oct ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Sep ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Aug ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Jul ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Jun ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
May ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Apr ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Mar ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Feb ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Jan ’25n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Dec ’24n/a
US$86.30
0%
4.7%US$92.00US$75.00n/a10
Nov ’24US$86.73
US$86.30
-0.5%
4.7%US$92.00US$75.00n/a10
Oct ’24US$85.62
US$86.30
+0.8%
4.7%US$92.00US$75.00n/a10
Sep ’24US$85.06
US$87.09
+2.4%
5.3%US$95.00US$75.00n/a11
Aug ’24US$84.00
US$87.36
+4.0%
5.4%US$95.00US$75.00n/a11
Jul ’24US$65.32
US$86.38
+32.2%
12.8%US$113.00US$73.00n/a13
Jun ’24US$70.25
US$86.38
+23.0%
12.8%US$113.00US$73.00n/a13
May ’24US$70.88
US$81.31
+14.7%
12.2%US$100.00US$65.00n/a13
Apr ’24US$73.26
US$79.75
+8.9%
10.9%US$90.00US$65.00n/a12
Mar ’24US$73.20
US$79.75
+8.9%
10.9%US$90.00US$65.00n/a12
Feb ’24US$56.50
US$65.17
+15.3%
13.1%US$78.00US$55.00n/a12
Jan ’24US$54.73
US$67.25
+22.9%
13.2%US$80.00US$55.00n/a12
Dec ’23US$57.02
US$67.18
+17.8%
13.8%US$80.00US$55.00n/a11
Nov ’23US$60.62
US$70.45
+16.2%
11.9%US$81.00US$57.00US$86.7311

Analyst Forecast: Target price is lower than the current share price.

Discover undervalued companies

Capgemini

€26.2b

Engages in the provision of consulting, digital transformation, technology, and engineering services primarily in North America, France, the United Kingdom, Ireland, the rest of Europe, the Asia-Pacific, and Latin America.

CAPP

€152.63

7D

-2.5%

1Y

-16.5%

Computacenter

UK£2.3b

Provides technology and services to corporate and public sector organizations in the United Kingdom, Germany, France, North America, and internationally.

CCCL

UK£22.16

7D

-0.3%

1Y

-19.4%

Kontron

€1.1b

Engages in the provision of internet of things (IoT) solutions in Austria and internationally.

0L9J

€17.15

7D

-0.8%

1Y

-23.8%