Sage Group Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: SGE (£12.64) is trading below our estimate of fair value (£14.25)

Significantly Below Fair Value: SGE is trading below fair value, but not by a significant amount.


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SGE 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/Revenue6.1x
Enterprise Value/EBITDA28.7x
PEG Ratio3.4x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SGE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.5x
BYIT Bytes Technology Group
27.8x10.6%UK£1.2b
ALFA Alfa Financial Software Holdings
20.9x1.9%UK£490.3m
CER Cerillion
34.8x10.0%UK£450.1m
IDOX IDOX
50.7x19.8%UK£282.9m
SGE Sage Group
60x17.7%UK£12.7b

Price-To-Earnings vs Peers: SGE is expensive based on its Price-To-Earnings Ratio (60x) compared to the peer average (33.5x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: SGE is expensive based on its Price-To-Earnings Ratio (60x) compared to the UK Software industry average (36.8x).


Price to Earnings Ratio vs Fair Ratio

What is SGE'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.

SGE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio60x
Fair PE Ratio46.6x

Price-To-Earnings vs Fair Ratio: SGE is expensive based on its Price-To-Earnings Ratio (60x) compared to the estimated Fair Price-To-Earnings Ratio (46.6x).


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 SGE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£12.64
UK£11.79
-6.7%
15.2%UK£15.00UK£8.09n/a21
Mar ’25UK£12.45
UK£11.56
-7.1%
15.4%UK£14.00UK£8.09n/a21
Feb ’25UK£11.74
UK£11.40
-2.8%
15.2%UK£14.00UK£8.09n/a19
Jan ’25UK£11.73
UK£11.29
-3.7%
15.7%UK£14.50UK£8.09n/a21
Dec ’24UK£11.49
UK£11.08
-3.5%
16.3%UK£14.50UK£8.09n/a21
Nov ’24UK£9.82
UK£9.98
+1.7%
15.3%UK£12.70UK£8.00n/a21
Oct ’24UK£9.89
UK£9.83
-0.6%
14.4%UK£12.70UK£8.00n/a22
Sep ’24UK£9.70
UK£9.72
+0.2%
13.7%UK£12.70UK£8.00n/a22
Aug ’24UK£9.39
UK£9.65
+2.8%
13.2%UK£12.70UK£8.00n/a22
Jul ’24UK£9.25
UK£9.25
+0.02%
13.1%UK£12.70UK£7.01n/a22
Jun ’24UK£8.69
UK£8.91
+2.4%
10.4%UK£10.15UK£7.01n/a21
May ’24UK£8.19
UK£8.57
+4.7%
10.6%UK£9.96UK£6.83n/a21
Apr ’24UK£7.75
UK£8.56
+10.5%
10.6%UK£9.96UK£6.83n/a21
Mar ’24UK£7.52
UK£8.64
+15.0%
10.8%UK£9.96UK£6.83UK£12.4520
Feb ’24UK£7.79
UK£8.64
+10.9%
10.8%UK£9.96UK£6.83UK£11.7420
Jan ’24UK£7.46
UK£8.40
+12.6%
15.0%UK£10.87UK£6.30UK£11.7319
Dec ’23UK£8.12
UK£8.37
+3.2%
14.6%UK£10.87UK£6.30UK£11.4920
Nov ’23UK£7.23
UK£7.92
+9.5%
15.5%UK£10.87UK£5.90UK£9.8219
Oct ’23UK£6.97
UK£7.86
+12.7%
16.0%UK£10.87UK£5.90UK£9.8918
Sep ’23UK£6.98
UK£7.70
+10.2%
14.1%UK£9.80UK£5.90UK£9.7018
Aug ’23UK£7.07
UK£7.52
+6.4%
15.3%UK£9.80UK£5.51UK£9.3918
Jul ’23UK£6.34
UK£7.66
+20.7%
14.3%UK£9.80UK£5.90UK£9.2519
Jun ’23UK£6.54
UK£7.74
+18.4%
14.6%UK£9.80UK£5.90UK£8.6919
May ’23UK£7.37
UK£7.99
+8.4%
14.9%UK£10.95UK£5.90UK£8.1920
Apr ’23UK£7.18
UK£8.00
+11.5%
15.3%UK£10.95UK£5.90UK£7.7520
Mar ’23UK£7.16
UK£8.24
+15.0%
16.4%UK£10.95UK£5.90UK£7.5219

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


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