This company has been acquired
Micro Focus International Valuation
Is MFGP undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation 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 MFGP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: MFGP ($6.48) is trading below our estimate of fair value ($7.44)
Significantly Below Fair Value: MFGP 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 MFGP?
Key metric: As MFGP is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.
| What is MFGP's PS Ratio? | |
|---|---|
| PS Ratio | 0.8x |
| Sales | US$2.74b |
| Market Cap | US$2.12b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 2.1x |
| Enterprise Value/EBITDA | 9.6x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does MFGP's PS Ratio compare to its peers?
| Company | Forward PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 1.9x | ||
VRNT Verint Systems | 1.7x | 6.1% | US$1.5b |
VYX NCR Voyix | 0.6x | -23.2% | US$2.1b |
RAMP LiveRamp Holdings | 2.8x | 8.4% | US$2.0b |
ENV Envestnet | 2.6x | 9.5% | US$3.5b |
MFGP Micro Focus International | 0.8x | -3.8% | US$1.7b |
Price-To-Sales vs Peers: MFGP is good value based on its Price-To-Sales Ratio (0.8x) compared to the peer average (5.8x).
Price to Sales Ratio vs Industry
How does MFGP's PS Ratio compare vs other companies in the US Software Industry?
| 81 Companies | Price / Sales | Estimated Growth | Market Cap |
|---|---|---|---|
| Industry Avg. | 5.3x | 12.4% | |
MFGP Micro Focus International | 0.8x | -3.8% | US$2.12b |
VYX NCR Voyix | 0.6x | -23.2% | US$2.12b |
PGY Pagaya Technologies | 0.7x | 15.8% | US$704.88m |
| 81 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
| Industry Avg. | 5.3x | 17.3% | |
MFGP Micro Focus International | 0.8x | -25.8% | US$2.12b |
Price-To-Sales vs Industry: MFGP is good value based on its Price-To-Sales Ratio (0.8x) compared to the US Software industry average (5.3x).
Price to Sales Ratio vs Fair Ratio
What is MFGP'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.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 0.8x |
| Fair PS Ratio | 2.3x |
Price-To-Sales vs Fair Ratio: MFGP is good value based on its Price-To-Sales Ratio (0.8x) compared to the estimated Fair Price-To-Sales Ratio (2.3x).
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.
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