Vertex, Inc.

NasdaqGM:VERX Stock Report

Market Cap: US$8.8b

Vertex Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Discounted Cash Flow
Simply Wall St
US$34.35
Fair Value
66.0% overvalued intrinsic discount
11
Number of Analysts

Below Fair Value: VERX ($57) is trading above our estimate of fair value ($34.35)

Significantly Below Fair Value: VERX is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As VERX is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for VERX. This is calculated by dividing VERX's market cap by their current revenue.
What is VERX's PS Ratio?
PS Ratio13.8x
SalesUS$643.23m
Market CapUS$8.80b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for VERX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average9.3x
PEGA Pegasystems
6.1x5.6%US$8.9b
SPSC SPS Commerce
12x15.1%US$7.2b
ALTR Altair Engineering
14.6x8.2%US$9.4b
U Unity Software
4.5x1.2%US$8.8b
VERX Vertex
13.8x14.1%US$8.8b

Price-To-Sales vs Peers: VERX is expensive based on its Price-To-Sales Ratio (13.8x) compared to the peer average (9.3x).

Price to Sales Ratio vs Industry

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

73 CompaniesPrice / SalesEstimated GrowthMarket Cap
VYX NCR Voyix
0.5x-22.4%US$1.91b
PGY Pagaya Technologies
0.7x15.2%US$646.70m
XPER Xperi
0.8x1.8%US$403.92m
EGHT 8x8
0.5x1.5%US$337.10m
No. of Companies73PS048121620+
73 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: VERX is expensive based on its Price-To-Sales Ratio (13.8x) compared to the US Software industry average (5.6x).

Price to Sales Ratio vs Fair Ratio

What is VERX'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.

VERX PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio13.8x
Fair PS Ratio6.4x

Price-To-Sales vs Fair Ratio: VERX is expensive based on its Price-To-Sales Ratio (13.8x) compared to the estimated Fair Price-To-Sales Ratio (6.4x).

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 VERX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$57.00
US$59.09
+3.7%
6.6%US$64.00US$52.00n/a11
Jan ’26US$53.35
US$57.92
+8.6%
5.8%US$62.00US$52.00n/a12
Dec ’25US$54.25
US$56.27
+3.7%
8.2%US$62.00US$46.00n/a11
Nov ’25US$42.17
US$42.09
-0.2%
9.4%US$50.00US$35.00n/a11
Oct ’25US$39.21
US$41.64
+6.2%
10.2%US$50.00US$35.00n/a11
Sep ’25US$38.69
US$41.00
+6.0%
8.2%US$47.00US$35.00n/a11
Aug ’25US$38.09
US$39.18
+2.9%
12.4%US$47.00US$30.00n/a11
Jul ’25US$35.75
US$37.00
+3.5%
11.0%US$45.00US$30.00n/a10
Jun ’25US$33.05
US$36.60
+10.7%
11.9%US$45.00US$30.00n/a10
May ’25US$29.21
US$37.00
+26.7%
10.1%US$45.00US$32.00n/a10
Apr ’25US$32.03
US$37.80
+18.0%
9.1%US$45.00US$34.00n/a10
Mar ’25US$33.55
US$37.80
+12.7%
9.1%US$45.00US$34.00n/a10
Feb ’25US$25.27
US$29.50
+16.7%
11.2%US$35.00US$23.00n/a10
Jan ’25US$26.94
US$29.70
+10.2%
10.8%US$35.00US$23.00US$53.3510
Dec ’24US$27.82
US$28.91
+3.9%
10.8%US$35.00US$23.00US$54.2511
Nov ’24US$23.49
US$24.09
+2.6%
9.8%US$28.00US$20.00US$42.1711
Oct ’24US$23.10
US$23.64
+2.3%
10.9%US$28.00US$20.00US$39.2111
Sep ’24US$22.52
US$23.50
+4.4%
11.3%US$28.00US$20.00US$38.6910
Aug ’24US$20.91
US$23.60
+12.9%
9.1%US$28.00US$20.00US$38.0910
Jul ’24US$19.50
US$22.64
+16.1%
17.3%US$28.00US$12.00US$35.7511
Jun ’24US$21.76
US$22.64
+4.0%
17.3%US$28.00US$12.00US$33.0511
May ’24US$20.88
US$21.36
+2.3%
18.4%US$28.00US$12.00US$29.2111
Apr ’24US$20.69
US$20.82
+0.6%
19.2%US$28.00US$12.00US$32.0311
Mar ’24US$15.60
US$17.82
+14.2%
23.2%US$28.00US$12.00US$33.5511
Feb ’24US$13.88
US$17.70
+27.5%
24.4%US$28.00US$12.00US$25.2710
Jan ’24US$14.51
US$18.15
+25.1%
23.8%US$28.00US$12.00US$26.9410
Analyst Price Target
Consensus Narrative from 11 Analysts
US$59.09
Fair Value
3.5% undervalued intrinsic discount
11
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/21 00:20
End of Day Share Price 2025/01/21 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

Vertex, Inc. is covered by 18 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Robert OliverBaird
Andrew DeGasperiBerenberg
Daniel JesterBMO Capital Markets Equity Research