Systems Valuation

Q: What is the Fair Price of SYS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SYS (PKR525.42) is trading above our estimate of [[fair value]] (PKR85.89)

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: SYS (PKR525.42) is trading above our estimate of fair value (PKR85.89)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SYS. This is calculated by dividing SYS's market cap by their current earnings.
What is SYS's PE Ratio?
PE Ratio	22x
Earnings	PK₨6.97b
Market Cap	PK₨153.62b

SYS 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	2.3x
Enterprise Value/EBITDA	14.6x
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SYS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	41.2x
AVN Avanceon	12.3x	n/a	PK₨22.7b
OCTOPUS Octopus Digital	91x	n/a	PK₨11.2b
SYM Symmetry Group	20.1x	n/a	PK₨2.9b
538891 Magellanic Cloud	41.5x	n/a	₹46.7b
SYS Systems	22x	31.9%	PK₨153.6b

Price-To-Earnings vs Peers: SYS is good value based on its Price-To-Earnings Ratio (22x) compared to the peer average (41.2x).

Price to Earnings Ratio vs Industry

How does SYS's PE Ratio compare vs other companies in the Asian IT Industry?

12 Companies	Price / Earnings	Estimated Growth	Market Cap

12 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: SYS is good value based on its Price-To-Earnings Ratio (22x) compared to the Asian IT industry average (24.1x).

Price to Earnings Ratio vs Fair Ratio

What is SYS'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.

SYS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	22x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SYS's Price-To-Earnings Fair Ratio for valuation analysis.

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 SYS forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	PK₨525.42	PK₨553.67 +5.4%	6.8%	PK₨585.00	PK₨501.00	n/a	3
Nov ’25	PK₨503.63	PK₨553.67 +9.9%	6.8%	PK₨585.00	PK₨501.00	n/a	3
Oct ’25	PK₨405.48	PK₨555.33 +37.0%	6.9%	PK₨585.00	PK₨501.00	n/a	3
Sep ’25	PK₨417.88	PK₨555.33 +32.9%	6.9%	PK₨585.00	PK₨501.00	n/a	3
Aug ’25	PK₨418.46	PK₨626.67 +49.8%	10.0%	PK₨715.00	PK₨580.00	n/a	3
Jul ’25	PK₨417.85	PK₨625.25 +49.6%	8.7%	PK₨715.00	PK₨580.00	n/a	4
Jun ’25	PK₨457.98	PK₨625.25 +36.5%	8.7%	PK₨715.00	PK₨580.00	n/a	4
May ’25	PK₨387.10	PK₨625.25 +61.5%	8.7%	PK₨715.00	PK₨580.00	n/a	4
Apr ’25	PK₨379.73	PK₨574.00 +51.2%	19.8%	PK₨715.00	PK₨369.00	n/a	5
Mar ’25	PK₨407.99	PK₨574.00 +40.7%	19.8%	PK₨715.00	PK₨369.00	n/a	5
Feb ’25	PK₨395.39	PK₨572.50 +44.8%	22.1%	PK₨715.00	PK₨369.00	n/a	4
Jan ’25	PK₨447.75	PK₨568.33 +26.9%	25.7%	PK₨715.00	PK₨369.00	n/a	3
Dec ’24	PK₨464.31	PK₨572.33 +23.3%	25.8%	PK₨715.00	PK₨369.00	n/a	3
Nov ’24	PK₨419.45	PK₨574.40 +36.9%	22.3%	PK₨715.00	PK₨369.00	PK₨503.63	4
Oct ’24	PK₨393.83	PK₨574.40 +45.8%	22.3%	PK₨715.00	PK₨369.00	PK₨405.48	4
Sep ’24	PK₨429.76	PK₨555.65 +29.3%	19.8%	PK₨640.00	PK₨369.00	PK₨417.88	4
Aug ’24	PK₨446.92	PK₨562.90 +26.0%	20.7%	PK₨669.00	PK₨369.00	PK₨418.46	4
Jul ’24	PK₨403.33	PK₨562.90 +39.6%	20.7%	PK₨669.00	PK₨369.00	PK₨417.85	4
Jun ’24	PK₨407.04	PK₨562.90 +38.3%	20.7%	PK₨669.00	PK₨369.00	PK₨457.98	4
May ’24	PK₨454.92	PK₨578.68 +27.2%	18.7%	PK₨669.00	PK₨369.00	PK₨387.10	5
Apr ’24	PK₨462.06	PK₨632.88 +37.0%	4.4%	PK₨669.00	PK₨586.40	PK₨379.73	5
Mar ’24	PK₨476.91	PK₨632.88 +32.7%	4.4%	PK₨669.00	PK₨586.40	PK₨407.99	5
Feb ’24	PK₨455.97	PK₨571.07 +25.2%	24.6%	PK₨669.00	PK₨262.00	PK₨395.39	6
Jan ’24	PK₨483.93	PK₨472.33 -2.4%	28.0%	PK₨640.00	PK₨262.00	PK₨447.75	6
Dec ’23	PK₨502.57	PK₨472.33 -6.0%	28.0%	PK₨640.00	PK₨262.00	PK₨464.31	6
Nov ’23	PK₨451.32	PK₨442.80 -1.9%	28.3%	PK₨640.00	PK₨262.00	PK₨419.45	5

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