Sonata Software Limited

NSEI:SONATSOFTW Stock Report

Market Cap: ₹188.7b

Sonata Software Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: SONATSOFTW (₹680.35) is trading above our estimate of fair value (₹411.37)

Significantly Below Fair Value: SONATSOFTW is trading above our estimate of fair value.

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SONATSOFTW 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/Revenue2x
Enterprise Value/EBITDA24.2x
PEG Ratio2.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SONATSOFTW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average45.7x
532175 Cyient
36.2x16.1%₹238.3b
504067 Zensar Technologies
26.3x9.9%₹175.5b
HAPPSTMNDS Happiest Minds Technologies
51.9x22.2%₹125.1b
TATATECH Tata Technologies
68.3x16.5%₹445.0b
SONATSOFTW Sonata Software
64.2x29.8%₹188.7b

Price-To-Earnings vs Peers: SONATSOFTW is expensive based on its Price-To-Earnings Ratio (64.2x) compared to the peer average (45.7x).

Price to Earnings Ratio vs Industry

How does SONATSOFTW's PE Ratio compare vs other companies in the IN IT Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.6%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.6%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: SONATSOFTW is expensive based on its Price-To-Earnings Ratio (64.2x) compared to the Indian IT industry average (41.1x).

Price to Earnings Ratio vs Fair Ratio

What is SONATSOFTW'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.

SONATSOFTW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio64.2x
Fair PE Ratio46.4x

Price-To-Earnings vs Fair Ratio: SONATSOFTW is expensive based on its Price-To-Earnings Ratio (64.2x) compared to the estimated Fair Price-To-Earnings Ratio (46.4x).

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 SONATSOFTW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹680.35
₹730.57
+7.4%
8.2%₹780.00₹600.00n/a7
Sep ’25₹665.75
₹722.71
+8.6%
8.5%₹780.00₹600.00n/a7
Aug ’25₹664.15
₹684.67
+3.1%
10.4%₹780.00₹600.00n/a6
Jul ’25₹621.50
₹665.50
+7.1%
10.2%₹770.00₹600.00n/a6
Jun ’25₹515.25
₹665.50
+29.2%
10.2%₹770.00₹600.00n/a6
May ’25₹691.15
₹844.17
+22.1%
9.3%₹915.00₹700.00n/a6
Apr ’25₹716.15
₹834.17
+16.5%
10.7%₹915.00₹690.00n/a6
Mar ’25₹817.30
₹843.75
+3.2%
10.7%₹915.00₹690.00n/a4
Feb ’25₹764.65
₹741.63
-3.0%
13.7%₹915.00₹660.00n/a4
Jan ’25₹722.90
₹721.63
-0.2%
16.1%₹915.00₹610.00n/a4
Dec ’24₹684.43
₹657.17
-4.0%
5.7%₹701.50₹610.00n/a3
Nov ’24₹572.10
₹614.67
+7.4%
5.7%₹660.00₹574.00n/a3
Oct ’24₹528.90
₹540.38
+2.2%
15.0%₹640.00₹417.50n/a4
Sep ’24₹521.33
₹532.88
+2.2%
13.6%₹610.00₹417.50₹665.754
Aug ’24₹523.48
₹532.88
+1.8%
13.6%₹610.00₹417.50₹664.154
Jul ’24₹504.73
₹495.38
-1.9%
10.6%₹564.00₹417.50₹621.504
Jun ’24₹493.58
₹495.38
+0.4%
10.6%₹564.00₹417.50₹515.254
May ’24₹427.38
₹377.50
-11.7%
13.0%₹425.00₹289.00₹691.155
Apr ’24₹418.15
₹377.50
-9.7%
13.0%₹425.00₹289.00₹716.155
Mar ’24₹385.48
₹377.50
-2.1%
13.0%₹425.00₹289.00₹817.305
Feb ’24₹310.05
₹312.33
+0.7%
14.1%₹366.00₹260.00₹764.656
Jan ’24₹281.85
₹297.75
+5.6%
11.0%₹350.00₹260.00₹722.906
Dec ’23₹290.73
₹287.30
-1.2%
8.7%₹330.00₹260.00₹684.435
Nov ’23₹260.03
₹287.30
+10.5%
8.7%₹330.00₹260.00₹572.105
Oct ’23₹257.80
₹286.35
+11.1%
9.5%₹330.00₹252.38₹528.905
Sep ’23₹271.18
₹286.35
+5.6%
9.5%₹330.00₹252.38₹521.335

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

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