Napatech Valuation

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

Below Fair Value: NAPA (NOK21.9) is trading below our estimate of fair value (NOK331.98)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for NAPA. This is calculated by dividing NAPA's market cap by their current revenue.
What is NAPA's PS Ratio?
PS Ratio	10.1x
Sales	DKK 136.81m
Market Cap	DKK 1.38b

NAPA 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/Revenue	9.7x
Enterprise Value/EBITDA	-14.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does NAPA's PS Ratio compare to its peers?

The above table shows the PS ratio for NAPA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	1.8x
SMOP Smartoptics Group	3.1x	19.8%	NOK 1.8b
HDLY Huddly	1x	n/a	NOK 139.7m
QFR Q-Free	1.2x	n/a	NOK 1.3b
XPLRA Xplora Technologies	1.8x	14.0%	NOK 1.4b
NAPA Napatech	10.1x	83.4%	NOK 2.2b

Price-To-Sales vs Peers: NAPA is expensive based on its Price-To-Sales Ratio (10.1x) compared to the peer average (1.8x).

Price to Sales Ratio vs Industry

How does NAPA's PS Ratio compare vs other companies in the European Communications Industry?

7 Companies	Price / Sales	Estimated Growth	Market Cap

7 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: NAPA is expensive based on its Price-To-Sales Ratio (10.1x) compared to the European Communications industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is NAPA'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.

NAPA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	10.1x
Fair PS Ratio	33.6x

Price-To-Sales vs Fair Ratio: NAPA is good value based on its Price-To-Sales Ratio (10.1x) compared to the estimated Fair Price-To-Sales Ratio (33.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.