Temenos AG

LSE:0QOA Stock Report

Market Cap: CHF 4.1b

Temenos Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: 0QOA (CHF55.3) is trading below our estimate of fair value (CHF98)

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

Key Valuation Metric

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

Key metric: As 0QOA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0QOA. This is calculated by dividing 0QOA's market cap by their current earnings.
What is 0QOA's PE Ratio?
PE Ratio31.7x
EarningsUS$144.08m
Market CapUS$4.61b

Price to Earnings Ratio vs Peers

How does 0QOA's PE Ratio compare to its peers?

The above table shows the PE ratio for 0QOA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average51.8x
BYIT Bytes Technology Group
21x6.7%UK£1.1b
SGE Sage Group
40.3x12.5%UK£13.0b
GBG GB Group
115.8x36.6%UK£942.9m
ALFA Alfa Financial Software Holdings
30.2x6.3%UK£667.0m
0QOA Temenos
31.7x11.4%CHF 4.0b

Price-To-Earnings vs Peers: 0QOA is good value based on its Price-To-Earnings Ratio (31.7x) compared to the peer average (51.8x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
SORT Sorted Group Holdings
3xn/aUS$5.52m
No more companies available in this PE range
0QOA 31.7xIndustry Avg. 34.8xNo. of Companies5PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0QOA is good value based on its Price-To-Earnings Ratio (31.7x) compared to the UK Software industry average (34.8x).

Price to Earnings Ratio vs Fair Ratio

What is 0QOA'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.

0QOA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.7x
Fair PE Ratio41.7x

Price-To-Earnings vs Fair Ratio: 0QOA is good value based on its Price-To-Earnings Ratio (31.7x) compared to the estimated Fair Price-To-Earnings Ratio (41.6x).

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 0QOA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 55.30
CHF 66.35
+20.0%
14.8%CHF 85.43CHF 50.42n/a16
Nov ’25CHF 60.15
CHF 65.41
+8.8%
15.6%CHF 85.39CHF 49.76n/a16
Oct ’25CHF 58.30
CHF 64.73
+11.0%
17.2%CHF 86.22CHF 49.02n/a15
Sep ’25CHF 58.90
CHF 65.22
+10.7%
16.8%CHF 87.78CHF 49.91n/a15
Aug ’25CHF 61.00
CHF 67.03
+9.9%
16.6%CHF 90.05CHF 51.20n/a15
Jul ’25CHF 61.99
CHF 69.63
+12.3%
20.1%CHF 98.81CHF 52.31n/a15
Jun ’25CHF 57.55
CHF 69.93
+21.5%
20.3%CHF 99.37CHF 52.61n/a15
May ’25CHF 57.75
CHF 70.75
+22.5%
20.0%CHF 99.62CHF 52.74n/a15
Apr ’25CHF 64.45
CHF 75.14
+16.6%
19.8%CHF 103.82CHF 57.46n/a15
Mar ’25CHF 66.78
CHF 75.08
+12.4%
19.3%CHF 100.93CHF 55.86n/a15
Feb ’25CHF 88.25
CHF 80.67
-8.6%
16.5%CHF 100.14CHF 58.48n/a15
Jan ’25CHF 78.16
CHF 70.42
-9.9%
17.7%CHF 98.71CHF 46.24n/a16
Dec ’24CHF 74.20
CHF 69.90
-5.8%
17.0%CHF 99.69CHF 46.70n/a16
Nov ’24CHF 65.78
CHF 70.16
+6.7%
17.4%CHF 100.50CHF 47.27CHF 60.1516
Oct ’24CHF 64.92
CHF 72.53
+11.7%
18.8%CHF 105.63CHF 49.67CHF 58.3016
Sep ’24CHF 69.80
CHF 69.40
-0.6%
19.5%CHF 101.24CHF 47.61CHF 58.9017
Aug ’24CHF 74.76
CHF 68.47
-8.4%
19.7%CHF 100.32CHF 47.17CHF 61.0017
Jul ’24CHF 70.77
CHF 68.28
-3.5%
18.6%CHF 100.50CHF 47.24CHF 61.9917
Jun ’24CHF 76.60
CHF 68.59
-10.5%
18.6%CHF 100.84CHF 47.40CHF 57.5517
May ’24CHF 73.50
CHF 68.06
-7.4%
18.7%CHF 100.36CHF 47.18CHF 57.7517
Apr ’24CHF 63.27
CHF 63.52
+0.4%
18.5%CHF 86.45CHF 46.45CHF 64.4517
Mar ’24CHF 70.00
CHF 63.47
-9.3%
18.3%CHF 88.06CHF 47.31CHF 66.7817
Feb ’24CHF 64.88
CHF 57.41
-11.5%
18.7%CHF 84.68CHF 44.18CHF 88.2516
Jan ’24CHF 50.78
CHF 56.96
+12.2%
27.7%CHF 109.05CHF 40.15CHF 78.1616
Dec ’23CHF 58.73
CHF 59.19
+0.8%
28.7%CHF 111.69CHF 41.12CHF 74.2016
Nov ’23CHF 60.13
CHF 60.45
+0.5%
26.1%CHF 109.12CHF 42.69CHF 65.7816

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

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