Endava plc

NYSE:DAVA Stock Report

Market Cap: US$1.6b

Endava Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: DAVA ($26.74) is trading below our estimate of fair value ($32.16)

Significantly Below Fair Value: DAVA is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for DAVA. This is calculated by dividing DAVA's market cap by their current revenue.
What is DAVA's PS Ratio?
PS Ratio1.7x
SalesUK£747.39m
Market CapUK£1.23b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for DAVA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.6x
GDYN Grid Dynamics Holdings
4.3x17.3%US$1.4b
CINT CI&T
2.4x16.1%US$884.5m
HCKT Hackett Group
2.8x5.9%US$838.6m
ASGN ASGN
0.9x4.2%US$3.7b
DAVA Endava
1.7x9.8%US$1.6b

Price-To-Sales vs Peers: DAVA is good value based on its Price-To-Sales Ratio (1.7x) compared to the peer average (2.6x).

Price to Sales Ratio vs Industry

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

27 CompaniesPrice / SalesEstimated GrowthMarket Cap
KD Kyndryl Holdings
0.4x1.7%US$6.51b
DXC DXC Technology
0.3x-1.9%US$3.55b
RXT Rackspace Technology
0.2x0.7%US$539.34m
UIS Unisys
0.3x3.4%US$511.20m
DAVA 1.7xIndustry Avg. 2.0xNo. of Companies27PS02.44.87.29.612+
27 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: DAVA is good value based on its Price-To-Sales Ratio (1.7x) compared to the US IT industry average (2x).

Price to Sales Ratio vs Fair Ratio

What is DAVA'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.

DAVA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.7x
Fair PS Ratio1.6x

Price-To-Sales vs Fair Ratio: DAVA is expensive based on its Price-To-Sales Ratio (1.7x) compared to the estimated Fair Price-To-Sales Ratio (1.6x).

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 DAVA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$26.74
US$37.84
+41.5%
17.3%US$54.39US$29.97n/a12
Nov ’25US$23.71
US$36.92
+55.7%
20.4%US$53.90US$27.01n/a12
Oct ’25US$25.29
US$38.30
+51.4%
19.5%US$55.44US$27.99n/a12
Sep ’25US$31.97
US$43.73
+36.8%
26.2%US$67.38US$31.47n/a12
Aug ’25US$30.99
US$43.73
+41.1%
26.2%US$67.38US$31.47n/a12
Jul ’25US$29.10
US$43.07
+48.0%
25.9%US$66.03US$30.84n/a12
Jun ’25US$26.94
US$44.41
+64.9%
25.1%US$66.11US$31.05n/a12
May ’25US$31.25
US$50.23
+60.7%
20.6%US$64.37US$33.42n/a12
Apr ’25US$37.68
US$52.38
+39.0%
18.3%US$65.54US$39.27n/a12
Mar ’25US$39.10
US$53.35
+36.4%
24.7%US$84.59US$39.07n/a11
Feb ’25US$71.66
US$75.27
+5.0%
14.1%US$90.36US$54.14n/a11
Jan ’25US$77.85
US$71.35
-8.4%
10.9%US$85.06US$54.18n/a10
Dec ’24US$66.36
US$69.65
+5.0%
11.2%US$83.59US$53.24n/a9
Nov ’24US$48.96
US$65.52
+33.8%
12.5%US$83.07US$51.99US$23.718
Oct ’24US$57.35
US$68.35
+19.2%
18.1%US$98.67US$52.80US$25.298
Sep ’24US$49.45
US$71.85
+45.3%
17.9%US$101.70US$54.27US$31.978
Aug ’24US$51.33
US$73.03
+42.3%
18.1%US$103.53US$55.25US$30.998
Jul ’24US$51.79
US$69.94
+35.0%
19.0%US$100.04US$53.38US$29.107
Jun ’24US$49.77
US$74.89
+50.5%
20.8%US$103.49US$52.74US$26.947
May ’24US$58.99
US$94.23
+59.7%
12.0%US$112.37US$81.77US$31.257
Apr ’24US$67.18
US$94.33
+40.4%
13.0%US$117.69US$78.02US$37.687
Mar ’24US$80.28
US$94.50
+17.7%
13.2%US$118.42US$76.97US$39.107
Feb ’24US$90.22
US$101.20
+12.2%
13.3%US$124.50US$79.74US$71.667
Jan ’24US$76.50
US$98.77
+29.1%
12.7%US$121.66US$77.91US$77.857
Dec ’23US$80.60
US$97.65
+21.2%
12.4%US$120.08US$78.05US$66.367
Nov ’23US$74.34
US$102.01
+37.2%
12.8%US$116.95US$79.43US$48.967

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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