IAR Systems Group AB (publ)

OM:IAR B Stock Report

Market Cap: SEK 1.6b

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 (SEK123.5) is trading below our estimate of fair value (SEK216.05)

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 Ratio3.1x
SalesSEK 526.10m
Market CapSEK 1.62b

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.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3x
FPIP Formpipe Software
2.4x8.7%SEK 1.3b
247 24SevenOffice Group
4.1xn/aSEK 1.6b
CINT Cint Group
1.3x2.2%SEK 2.9b
VERT B Vertiseit
4x28.5%SEK 1.4b
IAR B IAR Systems Group
3.1x4.4%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 (3x).

Price to Sales Ratio vs Industry

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

11 CompaniesPrice / SalesEstimated GrowthMarket Cap
QBIT QuickBit eu
0.2xn/aUS$37.96m
THINC Thinc Collective
0.1xn/aUS$3.21m
AYIMA B Ayima Group
0.2xn/aUS$2.24m
SILEON Sileon
0.4x-48.0%US$2.02m
IAR B 3.1xIndustry Avg. 2.2xNo. of Companies12PS01.63.24.86.48+
11 CompaniesEstimated GrowthMarket 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 (2.2x).

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 Ratio3.1x
Fair PS Ratio1.7x

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

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 04:42
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

IAR Systems Group AB (publ) is covered by 3 analysts. 1 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Viktor HögbergDanske Bank
Joachim GunellDNB Markets
Erik HaeggstromPareto Securities