Absolute Software Corporation

NasdaqGS:ABST Stock Report

Market Cap: US$608.9m

Absolute Software Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: ABST ($11.49) is trading below our estimate of fair value ($47.2)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for ABST. This is calculated by dividing ABST's market cap by their current revenue.
What is ABST's PS Ratio?
PS Ratio2.7x
SalesUS$222.06m
Market CapUS$608.92m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for ABST vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.5x
OSPN OneSpan
2.9x3.8%US$705.1m
AIP Arteris
6.4x15.7%US$341.5m
XPER Xperi
0.8x1.8%US$418.3m
RDWR Radware
3.8x6.8%US$960.8m
ABST Absolute Software
2.7x14.3%US$806.0m

Price-To-Sales vs Peers: ABST is expensive based on its Price-To-Sales Ratio (2.7x) compared to the peer average (2.3x).

Price to Sales Ratio vs Industry

How does ABST's PS Ratio compare vs other companies in the US Software Industry?

76 CompaniesPrice / SalesEstimated GrowthMarket Cap
VYX NCR Voyix
0.6x-23.2%US$2.15b
PGY Pagaya Technologies
0.8x15.8%US$773.38m
XPER Xperi
0.8x1.8%US$418.27m
EGHT 8x8
0.6x1.1%US$415.50m
ABST 2.7xIndustry Avg. 5.5xNo. of Companies76PS048121620+
76 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ABST is good value based on its Price-To-Sales Ratio (2.7x) compared to the US Software industry average (4.3x).

Price to Sales Ratio vs Fair Ratio

What is ABST'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.

ABST PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.7x
Fair PS Ratio4x

Price-To-Sales vs Fair Ratio: ABST is good value based on its Price-To-Sales Ratio (2.7x) compared to the estimated Fair Price-To-Sales Ratio (4x).

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

Bitdeer Technologies Group

US$1.8b

Operates as a technology company for blockchain and computing.

BTDR

US$11.16

7D

-3.3%

1Y

145.3%

Enghouse Systems

CA$1.6b

Develops enterprise software solutions worldwide.

EGHS.F

CA$20.94

7D

-0.3%

1Y

-16.5%

Dropbox

US$8.8b

Provides a content collaboration platform worldwide.

DBX

US$28.37

7D

6.4%

1Y

0.9%