Sage Group Valuation

Is SGGE.F 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-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SGGE.F when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$13.53
Fair Value
27.8% overvalued intrinsic discount
18
Number of Analysts

Below Fair Value: SGGE.F ($17.3) is trading above our estimate of fair value ($13.53)

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


Key Valuation Metric

Which metric is best to use when looking at relative valuation for SGGE.F?

Key metric: As SGGE.F is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SGGE.F. This is calculated by dividing SGGE.F's market cap by their current earnings.
What is SGGE.F's PE Ratio?
PE Ratio35.5x
EarningsUK£347.00m
Market CapUK£12.32b

Price to Earnings Ratio vs Peers

How does SGGE.F's PE Ratio compare to its peers?

The above table shows the PE ratio for SGGE.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average39.1x
BSY Bentley Systems
61.7x16.21%US$15.8b
DOCU DocuSign
13.8x-24.69%US$14.9b
PTC PTC
47x14.23%US$20.3b
DT Dynatrace
33.8x2.17%US$15.9b
SGGE.F Sage Group
35.5x12.77%US$12.3b

Price-To-Earnings vs Peers: SGGE.F is good value based on its Price-To-Earnings Ratio (35.5x) compared to the peer average (39.1x).


Price to Earnings Ratio vs Industry

How does SGGE.F's PE Ratio compare vs other companies in the US Software Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NXTT Next Technology Holding
3.1xn/aUS$527.88m
YXT YXT.COM Group Holding
1.4xn/aUS$52.51m
AMOD Alpha Modus Holdings
4.3xn/aUS$17.29m
CTKY.Y CooTek (Cayman)
3.9xn/aUS$245.58k
SGGE.F 35.5xIndustry Avg. 41.5xNo. of Companies12PE020406080100+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SGGE.F is good value based on its Price-To-Earnings Ratio (35.5x) compared to the US Software industry average (41.1x).


Price to Earnings Ratio vs Fair Ratio

What is SGGE.F's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SGGE.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.5x
Fair PE Ratio38.4x

Price-To-Earnings vs Fair Ratio: SGGE.F is good value based on its Price-To-Earnings Ratio (35.5x) compared to the estimated Fair Price-To-Earnings Ratio (38.4x).


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 SGGE.F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$17.30
US$18.15
+4.91%
12.41%US$21.56US$14.15n/a18
Jun ’26US$16.44
US$18.15
+10.37%
12.41%US$21.56US$14.15n/a18
May ’26US$16.80
US$17.84
+6.16%
13.58%US$21.31US$13.32n/a18
Apr ’26US$16.35
US$17.47
+6.88%
13.48%US$20.67US$12.92n/a19
Mar ’26US$16.20
US$17.02
+5.09%
14.49%US$20.18US$12.61n/a19
Feb ’26US$17.40
US$16.50
-5.18%
15.46%US$19.84US$12.40n/a19
Jan ’26US$15.50
US$16.65
+7.40%
13.72%US$19.80US$12.77n/a20
Dec ’25US$17.06
US$16.23
-4.85%
13.37%US$19.31US$12.68n/a20
Nov ’25US$13.75
US$15.68
+14.03%
13.16%US$19.62US$11.51n/a20
Oct ’25US$13.75
US$16.04
+16.63%
13.16%US$20.05US$11.77n/a20
Sep ’25US$13.64
US$15.62
+14.48%
13.29%US$19.55US$11.47n/a20
Aug ’25US$13.65
US$15.46
+13.26%
13.62%US$19.28US$11.31n/a20
Jul ’25US$14.64
US$15.40
+5.17%
14.11%US$18.97US$11.13n/a20
Jun ’25US$13.65
US$15.58
+14.12%
14.36%US$19.11US$11.21US$16.4420
May ’25US$13.45
US$14.92
+10.91%
16.23%US$18.65US$10.06US$16.8021
Apr ’25US$14.90
US$14.79
-0.72%
15.22%US$18.82US$10.15US$16.3521
Mar ’25US$15.39
US$14.56
-5.37%
15.36%US$17.64US$10.19US$16.2021
Feb ’25US$14.77
US$14.49
-1.87%
15.19%US$17.79US$10.28US$17.4019
Jan ’25US$14.79
US$14.42
-2.53%
15.74%US$18.52US$10.33US$15.5021
Dec ’24US$14.50
US$13.99
-3.52%
16.29%US$18.30US$10.21US$17.0621
Nov ’24US$11.57
US$12.14
+4.93%
15.26%US$15.45US$9.73US$13.7521
Oct ’24US$12.07
US$12.03
-0.37%
14.37%US$15.54US$9.79US$13.7522
Sep ’24US$12.31
US$12.36
+0.43%
13.71%US$16.15US$10.17US$13.6422
Aug ’24US$11.83
US$12.33
+4.20%
13.23%US$16.22US$10.22US$13.6522
Jul ’24US$10.85
US$11.80
+8.72%
13.13%US$16.20US$8.94US$14.6422
Jun ’24US$10.63
US$11.01
+3.57%
10.35%US$12.55US$8.66US$13.6521
AnalystConsensusTarget
Consensus Narrative from 18 Analysts
US$18.16
Fair Value
4.8% undervalued intrinsic discount
18
Number of Analysts

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


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/06/16 16:51
End of Day Share Price 2025/06/16 00:00
Earnings2025/03/31
Annual Earnings2024/09/30

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.

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 Github.

Analyst Sources

The Sage Group plc is covered by 48 analysts. 17 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Hélène CoumesAlphaValue
Alexander ToutArete Research Services LLP
Knut WollerBaader Helvea Equity Research