DSGX Relative Valuation
DSGX's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, DSGX is overvalued; if below, it's undervalued.
Historical Valuation
Descartes Systems Group Inc (DSGX) is now in the Fair zone, suggesting that its current forward PE ratio of 46.25 is considered Fairly compared with the five-year average of 46.85. The fair price of Descartes Systems Group Inc (DSGX) is between 90.57 to 112.92 according to relative valuation methord.
Relative Value
Fair Zone
90.57-112.92
Current Price：102.28
Fair
43.66
PE
1Y
3Y
5Y
Trailing
Forward
26.16
EV/EBITDA
Descartes Systems Group Inc. (DSGX) has a current EV/EBITDA of 26.16. The 5-year average EV/EBITDA is 27.65. The thresholds are as follows: Strongly Undervalued below 20.83, Undervalued between 20.83 and 24.24, Fairly Valued between 31.06 and 24.24, Overvalued between 31.06 and 34.47, and Strongly Overvalued above 34.47. The current Forward EV/EBITDA of 26.16 falls within the Historic Trend Line -Fairly Valued range.
38.33
EV/EBIT
Descartes Systems Group Inc. (DSGX) has a current EV/EBIT of 38.33. The 5-year average EV/EBIT is 45.02. The thresholds are as follows: Strongly Undervalued below 29.04, Undervalued between 29.04 and 37.03, Fairly Valued between 53.00 and 37.03, Overvalued between 53.00 and 60.99, and Strongly Overvalued above 60.99. The current Forward EV/EBIT of 38.33 falls within the Historic Trend Line -Fairly Valued range.
12.14
PS
Descartes Systems Group Inc. (DSGX) has a current PS of 12.14. The 5-year average PS is 12.38. The thresholds are as follows: Strongly Undervalued below 9.79, Undervalued between 9.79 and 11.08, Fairly Valued between 13.67 and 11.08, Overvalued between 13.67 and 14.97, and Strongly Overvalued above 14.97. The current Forward PS of 12.14 falls within the Historic Trend Line -Fairly Valued range.
39.95
P/OCF
Descartes Systems Group Inc. (DSGX) has a current P/OCF of 39.95. The 5-year average P/OCF is 33.23. The thresholds are as follows: Strongly Undervalued below 24.68, Undervalued between 24.68 and 28.96, Fairly Valued between 37.51 and 28.96, Overvalued between 37.51 and 41.79, and Strongly Overvalued above 41.79. The current Forward P/OCF of 39.95 falls within the Overvalued range.
31.64
P/FCF
Descartes Systems Group Inc. (DSGX) has a current P/FCF of 31.64. The 5-year average P/FCF is 34.04. The thresholds are as follows: Strongly Undervalued below 25.46, Undervalued between 25.46 and 29.75, Fairly Valued between 38.33 and 29.75, Overvalued between 38.33 and 42.62, and Strongly Overvalued above 42.62. The current Forward P/FCF of 31.64 falls within the Historic Trend Line -Fairly Valued range.
Descartes Systems Group Inc (DSGX) has a current Price-to-Book (P/B) ratio of 6.36. Compared to its 3-year average P/B ratio of 6.16 , the current P/B ratio is approximately 3.30% higher. Relative to its 5-year average P/B ratio of 6.08, the current P/B ratio is about 4.70% higher. Descartes Systems Group Inc (DSGX) has a Forward Free Cash Flow (FCF) yield of approximately 2.19%. Compared to its 3-year average FCF yield of 2.67%, the current FCF yield is approximately -18.00% lower. Relative to its 5-year average FCF yield of 2.64% , the current FCF yield is about -17.01% lower.
6.01
P/B
Median3y
6.16
Median5y
6.08
2.27
FCF Yield
Median3y
2.67
Median5y
2.64
Competitors Valuation Multiple
The average P/S ratio for DSGX's competitors is 9.99, providing a benchmark for relative valuation. Descartes Systems Group Inc Corp (DSGX) exhibits a P/S ratio of 12.14, which is 21.52% above the industry average. Given its robust revenue growth of 11.49%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of DSGX increased by 1.56% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 151.35M to 168.74M.
The secondary factor is the P/E Change, contributed -3.69%to the performance.
Overall, the performance of DSGX in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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