Thoughtworks Holding, Inc.

NasdaqGS:TWKS Stock Report

Market Cap: US$1.5b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Thoughtworks Holding Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: TWKS ($4.47) is trading below our estimate of fair value ($8.85)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for TWKS. This is calculated by dividing TWKS's market cap by their current revenue.
What is TWKS's PS Ratio?
PS Ratio1.4x
SalesUS$1.03b
Market CapUS$1.45b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for TWKS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.9x
GDYN Grid Dynamics Holdings
4.6x17.3%US$1.5b
DAVA Endava
1.8x9.7%US$1.7b
HCKT Hackett Group
2.8x5.9%US$846.6m
CINT CI&T
2.3x16.1%US$907.0m
TWKS Thoughtworks Holding
1.4x5.3%US$1.5b

Price-To-Sales vs Peers: TWKS is good value based on its Price-To-Sales Ratio (1.4x) compared to the peer average (3x).

Price to Sales Ratio vs Industry

How does TWKS's PS Ratio compare vs other companies in the US IT Industry?

27 CompaniesPrice / SalesEstimated GrowthMarket Cap
KD Kyndryl Holdings
0.5x1.6%US$7.55b
DXC DXC Technology
0.3x-1.9%US$3.95b
RXT Rackspace Technology
0.2x0.7%US$541.61m
UIS Unisys
0.3x3.4%US$541.03m
TWKS 1.4xIndustry Avg. 2.1xNo. of Companies27PS02.44.87.29.612+
27 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: TWKS is good value based on its Price-To-Sales Ratio (1.4x) compared to the US IT industry average (2.2x).

Price to Sales Ratio vs Fair Ratio

What is TWKS'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.

TWKS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.4x
Fair PS Ratio1.5x

Price-To-Sales vs Fair Ratio: TWKS is good value based on its Price-To-Sales Ratio (1.4x) compared to the estimated Fair Price-To-Sales Ratio (1.5x).

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 TWKS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
US$4.67
0%
12.8%US$6.00US$4.40n/a6
Nov ’25US$4.46
US$4.67
+4.6%
12.8%US$6.00US$4.40n/a6
Oct ’25US$4.41
US$4.67
+5.8%
12.8%US$6.00US$4.40n/a6
Sep ’25US$4.35
US$4.67
+7.3%
12.8%US$6.00US$4.40n/a6
Aug ’25US$3.56
US$4.02
+12.9%
33.4%US$6.00US$2.50n/a8
Jul ’25US$2.65
US$4.08
+54.0%
31.7%US$6.00US$2.50n/a8
Jun ’25US$2.76
US$4.31
+56.1%
28.5%US$6.00US$3.00n/a7
May ’25US$2.32
US$4.13
+78.0%
28.2%US$6.00US$2.50n/a7
Apr ’25US$2.50
US$4.46
+78.3%
25.7%US$6.00US$2.75n/a8
Mar ’25US$2.99
US$4.74
+58.4%
20.1%US$6.00US$3.40n/a8
Feb ’25US$4.78
US$5.50
+15.1%
9.1%US$6.00US$5.00n/a8
Jan ’25US$4.81
US$5.44
+13.0%
10.7%US$6.00US$4.50n/a8
Dec ’24US$4.18
US$5.19
+24.1%
9.6%US$6.00US$4.50n/a8
Nov ’24US$3.29
US$5.50
+67.2%
9.1%US$6.00US$5.00US$4.468
Oct ’24US$4.08
US$5.89
+44.3%
9.6%US$7.00US$5.00US$4.419
Sep ’24US$4.97
US$5.89
+18.5%
9.6%US$7.00US$5.00US$4.359
Aug ’24US$7.02
US$8.67
+23.5%
12.2%US$10.00US$7.00US$3.569
Jul ’24US$7.55
US$8.89
+17.7%
11.2%US$10.00US$7.00US$2.659
Jun ’24US$7.87
US$8.89
+12.9%
11.2%US$10.00US$7.00US$2.769
May ’24US$6.22
US$9.15
+47.1%
15.1%US$12.00US$7.00US$2.3210
Apr ’24US$7.36
US$9.25
+25.7%
13.5%US$12.00US$7.50US$2.5010
Mar ’24US$7.61
US$9.45
+24.2%
16.5%US$12.00US$7.50US$2.9910
Feb ’24US$10.92
US$12.15
+11.3%
9.0%US$14.00US$9.50US$4.7810
Jan ’24US$10.19
US$11.75
+15.3%
10.6%US$14.00US$9.50US$4.8110
Dec ’23US$9.20
US$11.95
+29.9%
11.9%US$14.00US$9.50US$4.1810
Nov ’23US$9.61
US$16.40
+70.7%
14.5%US$22.00US$14.00US$3.2910

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

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