DSGX PE Ratio & Valuation,Is DSGX Overvalued

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 Undervalued zone, suggesting that its current forward PE ratio of 33.80 is considered Undervalued compared with the five-year average of 46.88. The fair price of Descartes Systems Group Inc (DSGX) is between 113.01 to 138.61 according to relative valuation methord. Compared to the current price of 85.67 USD , Descartes Systems Group Inc is Undervalued By 24.19%.

Relative Value

Fair Zone

113.01-138.61

Current Price：85.67

24.19%

Undervalued

33.80

19.61

EV/EBITDA

Descartes Systems Group Inc. (DSGX) has a current EV/EBITDA of 19.61. The 5-year average EV/EBITDA is 26.94. The thresholds are as follows: Strongly Undervalued below 19.70, Undervalued between 19.70 and 23.32, Fairly Valued between 30.56 and 23.32, Overvalued between 30.56 and 34.18, and Strongly Overvalued above 34.18. The current Forward EV/EBITDA of 19.61 falls within the Strongly Undervalued range.

28.73

EV/EBIT

Descartes Systems Group Inc. (DSGX) has a current EV/EBIT of 28.73. The 5-year average EV/EBIT is 42.95. The thresholds are as follows: Strongly Undervalued below 27.63, Undervalued between 27.63 and 35.29, Fairly Valued between 50.61 and 35.29, Overvalued between 50.61 and 58.27, and Strongly Overvalued above 58.27. The current Forward EV/EBIT of 28.73 falls within the Undervalued range.

9.38

Descartes Systems Group Inc. (DSGX) has a current PS of 9.38. The 5-year average PS is 12.18. The thresholds are as follows: Strongly Undervalued below 9.36, Undervalued between 9.36 and 10.77, Fairly Valued between 13.59 and 10.77, Overvalued between 13.59 and 15.00, and Strongly Overvalued above 15.00. The current Forward PS of 9.38 falls within the Undervalued range.

22.36

P/OCF

Descartes Systems Group Inc. (DSGX) has a current P/OCF of 22.36. The 5-year average P/OCF is 32.72. The thresholds are as follows: Strongly Undervalued below 23.31, Undervalued between 23.31 and 28.01, Fairly Valued between 37.43 and 28.01, Overvalued between 37.43 and 42.13, and Strongly Overvalued above 42.13. The current Forward P/OCF of 22.36 falls within the Strongly Undervalued range.

22.58

P/FCF

Descartes Systems Group Inc. (DSGX) has a current P/FCF of 22.58. The 5-year average P/FCF is 33.33. The thresholds are as follows: Strongly Undervalued below 23.48, Undervalued between 23.48 and 28.41, Fairly Valued between 38.26 and 28.41, Overvalued between 38.26 and 43.19, and Strongly Overvalued above 43.19. The current Forward P/FCF of 22.58 falls within the Strongly Undervalued range.

Descartes Systems Group Inc (DSGX) has a current Price-to-Book (P/B) ratio of 4.72. Compared to its 3-year average P/B ratio of 6.12 , the current P/B ratio is approximately -22.88% higher. Relative to its 5-year average P/B ratio of 6.06, the current P/B ratio is about -22.08% higher. Descartes Systems Group Inc (DSGX) has a Forward Free Cash Flow (FCF) yield of approximately 3.34%. Compared to its 3-year average FCF yield of 2.66%, the current FCF yield is approximately 25.53% lower. Relative to its 5-year average FCF yield of 2.69% , the current FCF yield is about 24.23% lower.

4.72

P/B

Median3y

6.12

Median5y

6.06

3.34

FCF Yield

Median3y

2.66

Median5y

2.69

Competitors Valuation Multiple

The average P/S ratio for DSGX's competitors is 8.01, providing a benchmark for relative valuation. Descartes Systems Group Inc Corp (DSGX) exhibits a P/S ratio of 9.38, which is 17.12% above the industry average. Given its robust revenue growth of 11.21%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of DSGX decreased by 26.04% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 168.76M to 187.68M.

The secondary factor is the Margin Expansion, contributed 7.99%to the performance.

Overall, the performance of DSGX in the past 1 year is driven by Revenue Growth. Which is more sustainable.

11.21%

168.76M → 187.68M

Revenue Growth

7.99%

21.66 → 23.39

Margin Expansion

-45.24%

87.38 → 47.85

P/E Change

-26.04%

115.83 → 85.67

Mkt Cap Growth

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Frequently Asked Questions

Is Descartes Systems Group Inc (DSGX) currently overvalued or undervalued?

What is Descartes Systems Group Inc (DSGX) fair value?

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. The fair price of Descartes Systems Group Inc (DSGX) is between 113.01 to 138.61 according to relative valuation methord.

How does DSGX's valuation metrics compare to the industry average?

What is the current P/B ratio for Descartes Systems Group Inc (DSGX) as of Jan 09 2026?

As of Jan 09 2026, Descartes Systems Group Inc (DSGX) has a P/B ratio of 4.72. This indicates that the market values DSGX at 4.72 times its book value.

What is the current FCF Yield for Descartes Systems Group Inc (DSGX) as of Jan 09 2026?

As of Jan 09 2026, Descartes Systems Group Inc (DSGX) has a FCF Yield of 3.34%. This means that for every dollar of Descartes Systems Group Inc’s market capitalization, the company generates 3.34 cents in free cash flow.

What is the current Forward P/E ratio for Descartes Systems Group Inc (DSGX) as of Jan 09 2026?

As of Jan 09 2026, Descartes Systems Group Inc (DSGX) has a Forward P/E ratio of 33.80. This means the market is willing to pay $33.80 for every dollar of Descartes Systems Group Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Descartes Systems Group Inc (DSGX) as of Jan 09 2026?

As of Jan 09 2026, Descartes Systems Group Inc (DSGX) has a Forward P/S ratio of 9.38. This means the market is valuing DSGX at $9.38 for every dollar of expected revenue over the next 12 months.

DSGX Valuation