IAR Systems Group Valuation

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

Below Fair Value: IAR B (SEK125.5) is trading below our estimate of fair value (SEK218.82)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for IAR B. This is calculated by dividing IAR B's market cap by their current revenue.
What is IAR B's PS Ratio?
PS Ratio	3.1x
Sales	SEK 526.10m
Market Cap	SEK 1.65b

IAR B 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	2.9x
Enterprise Value/EBITDA	12.6x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does IAR B's PS Ratio compare to its peers?

The above table shows the PS ratio for IAR B 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	2.7x
FPIP Formpipe Software	2.6x	8.7%	SEK 1.4b
247 24SevenOffice Group	4x	n/a	SEK 1.6b
CINT Cint Group	1.1x	0.9%	SEK 2.5b
SLEEP Sleep Cycle	3.3x	24.9%	SEK 837.5m
IAR B IAR Systems Group	3.1x	4.4%	SEK 1.6b

Price-To-Sales vs Peers: IAR B is expensive based on its Price-To-Sales Ratio (3.1x) compared to the peer average (2.7x).

Price to Sales Ratio vs Industry

How does IAR B's PS Ratio compare vs other companies in the SE Software Industry?

11 Companies	Price / Sales	Estimated Growth	Market Cap
QBIT QuickBit eu	0.5x	n/a	US$45.43m
ARCA Arcario	0.4x	n/a	US$24.94m
SDS Seamless Distribution Systems	0.5x	4.0%	US$9.72m
THINC Thinc Collective	0.1x	n/a	US$3.21m

11 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: IAR B is expensive based on its Price-To-Sales Ratio (3.1x) compared to the Swedish Software industry average (2.1x).

Price to Sales Ratio vs Fair Ratio

What is IAR B'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.

IAR B PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	3.1x
Fair PS Ratio	1.7x

Price-To-Sales vs Fair Ratio: IAR B is expensive based on its Price-To-Sales Ratio (3.1x) compared to the estimated Fair Price-To-Sales Ratio (1.7x).

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.

Discover undervalued companies

CombinedX

SEK 582.3m

Provides technology solutions to companies and organizations.

SEK 31.20

-4.0%

-9.6%

Cint Group

SEK 2.4b

Provides software solutions for digital insights and research technology worldwide.

CINT

SEK 11.63

-9.0%

26.4%

Qlosr Group

SEK 9.0m

Offers IT solutions to companies and schools in Sweden.

QLOSR B

SEK 0.13

-95.5%