Vercom Valuation

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

VRC (PLN112) is trading below our estimate of [[fair value]] (PLN175.13)

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

Below Fair Value: VRC (PLN112) is trading below our estimate of fair value (PLN175.13)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for VRC. This is calculated by dividing VRC's market cap by their current preferred multiple.
What is VRC's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	zł2.48b

VRC 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	6.8x
Enterprise Value/EBITDA	30.4x
PEG Ratio	1.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for VRC 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	48.3x
TXT Text	12.9x	3.7%	zł2.1b
SHO Shoper	44.1x	24.2%	zł1.3b
ALL Ailleron	105.1x	n/a	zł239.0m
CLD Cloud Technologies	31.1x	n/a	zł276.9m
VRC Vercom	32x	19.8%	zł2.5b

Price-To-Earnings vs Peers: VRC is good value based on its Price-To-Earnings Ratio (32x) compared to the peer average (47.8x).

Price to Earnings Ratio vs Industry

How does VRC's PE Ratio compare vs other companies in the PL Software Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	32.5%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	32.5%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: VRC is expensive based on its Price-To-Earnings Ratio (32x) compared to the Polish Software industry average (19.1x).

Price to Earnings Ratio vs Fair Ratio

What is VRC'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.

VRC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	32x
Fair PE Ratio	26x

Price-To-Earnings vs Fair Ratio: VRC is expensive based on its Price-To-Earnings Ratio (32x) compared to the estimated Fair Price-To-Earnings Ratio (26.1x).

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 VRC 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	zł112.00	zł117.36 +4.8%	20.3%	zł141.00	zł75.30	n/a	5
Aug ’25	zł124.00	zł117.36 -5.4%	20.3%	zł141.00	zł75.30	n/a	5
Jul ’25	zł134.00	zł127.83 -4.6%	9.8%	zł141.00	zł115.00	n/a	4
Jun ’25	zł135.00	zł123.83 -8.3%	9.8%	zł141.00	zł115.00	n/a	3
May ’25	zł116.00	zł108.50 -6.5%	27.2%	zł141.00	zł69.50	n/a	3
Apr ’25	zł120.50	zł105.25 -12.7%	34.0%	zł141.00	zł69.50	n/a	2
Feb ’25	zł82.00	zł70.60 -13.9%	1.6%	zł71.70	zł69.50	n/a	2
Jan ’25	zł78.20	zł70.60 -9.7%	1.6%	zł71.70	zł69.50	n/a	2
Dec ’24	zł67.20	zł70.60 +5.1%	1.6%	zł71.70	zł69.50	n/a	2
Nov ’24	zł68.40	zł69.10 +1.0%	3.8%	zł71.70	zł66.50	n/a	2
Oct ’24	zł61.40	zł69.55 +13.3%	3.1%	zł71.70	zł67.40	n/a	2
Sep ’24	zł66.80	zł56.75 -15.0%	26.3%	zł71.70	zł41.80	n/a	2
Aug ’24	zł68.80	zł56.75 -17.5%	26.3%	zł71.70	zł41.80	zł124.00	2
May ’24	zł51.80	zł39.60 -23.6%	5.6%	zł41.80	zł37.40	zł116.00	2
Apr ’24	zł45.50	zł39.60 -13.0%	5.6%	zł41.80	zł37.40	zł120.50	2
Mar ’24	zł43.80	zł39.60 -9.6%	5.6%	zł41.80	zł37.40	zł109.50	2
Feb ’24	zł43.90	zł39.60 -9.8%	5.6%	zł41.80	zł37.40	zł82.00	2
Jan ’24	zł39.00	zł39.60 +1.5%	5.6%	zł41.80	zł37.40	zł78.20	2
Dec ’23	zł42.00	zł39.60 -5.7%	5.6%	zł41.80	zł37.40	zł67.20	2
Nov ’23	zł38.30	zł37.00 -3.4%	1.1%	zł37.40	zł36.60	zł68.40	2
Oct ’23	zł31.80	zł39.10 +23.0%	4.3%	zł40.80	zł37.40	zł61.40	2
Sep ’23	zł31.10	zł43.20 +38.9%	5.6%	zł45.60	zł40.80	zł66.80	2
Aug ’23	zł37.80	zł43.20 +14.3%	5.6%	zł45.60	zł40.80	zł68.80	2

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