Descartes Systems Group Stock Current Valuation
| DSG Stock | CAD 164.74 1.65 1.01% |
Valuation analysis of Descartes Systems helps investors to measure Descartes Systems' intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. As of the 29th of November 2024, Enterprise Value Over EBITDA is likely to grow to 34.89. Also, Enterprise Value Multiple is likely to grow to 34.89. Fundamental drivers impacting Descartes Systems' valuation include:
Price Book 7.6528 | Enterprise Value 13.7 B | Enterprise Value Ebitda 40.9871 | Price Sales 23.1729 | Forward PE 46.9484 |
Undervalued
Today
Please note that Descartes Systems' price fluctuation is very steady at this time. Calculation of the real value of Descartes Systems is based on 3 months time horizon. Increasing Descartes Systems' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Descartes Systems is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Descartes Stock. However, Descartes Systems' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 164.74 | Real 183.29 | Hype 163.63 | Naive 163.95 |
The intrinsic value of Descartes Systems' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Descartes Systems' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Descartes Systems Group helps investors to forecast how Descartes stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Descartes Systems more accurately as focusing exclusively on Descartes Systems' fundamentals will not take into account other important factors: Descartes Systems Group Company Current Valuation Analysis
Descartes Systems' Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Descartes Systems Current Valuation | 13.74 B |
Most of Descartes Systems' fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Descartes Systems Group is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Descartes Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for Descartes Systems is extremely important. It helps to project a fair market value of Descartes Stock properly, considering its historical fundamentals such as Current Valuation. Since Descartes Systems' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Descartes Systems' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Descartes Systems' interrelated accounts and indicators.
Click cells to compare fundamentals
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Descartes Systems Group has a Current Valuation of 13.74 B. This is 28.87% lower than that of the Software sector and 28.66% higher than that of the Information Technology industry. The current valuation for all Canada stocks is 17.36% higher than that of the company.
Descartes Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Descartes Systems' direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Descartes Systems could also be used in its relative valuation, which is a method of valuing Descartes Systems by comparing valuation metrics of similar companies.Descartes Systems is currently under evaluation in current valuation category among its peers.
Descartes Systems Current Valuation Drivers
We derive many important indicators used in calculating different scores of Descartes Systems from analyzing Descartes Systems' financial statements. These drivers represent accounts that assess Descartes Systems' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Descartes Systems' important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 3.7B | 5.3B | 6.2B | 6.2B | 7.6B | 8.0B | |
| Enterprise Value | 3.6B | 5.2B | 6.0B | 5.9B | 7.3B | 7.6B |
Descartes Fundamentals
| Return On Equity | 0.1 | ||||
| Return On Asset | 0.0751 | ||||
| Profit Margin | 0.21 % | ||||
| Operating Margin | 0.28 % | ||||
| Current Valuation | 13.74 B | ||||
| Shares Outstanding | 85.48 M | ||||
| Shares Owned By Institutions | 87.10 % | ||||
| Number Of Shares Shorted | 637.62 K | ||||
| Price To Earning | 118.05 X | ||||
| Price To Book | 7.65 X | ||||
| Price To Sales | 23.17 X | ||||
| Revenue | 572.93 M | ||||
| Gross Profit | 372.69 M | ||||
| EBITDA | 218.49 M | ||||
| Net Income | 115.91 M | ||||
| Cash And Equivalents | 29.55 M | ||||
| Cash Per Share | 0.38 X | ||||
| Total Debt | 6.98 M | ||||
| Debt To Equity | 46.10 % | ||||
| Current Ratio | 0.94 X | ||||
| Book Value Per Share | 15.35 X | ||||
| Cash Flow From Operations | 207.68 M | ||||
| Short Ratio | 5.60 X | ||||
| Earnings Per Share | 2.08 X | ||||
| Price To Earnings To Growth | 2.11 X | ||||
| Target Price | 62.86 | ||||
| Beta | 0.74 | ||||
| Market Capitalization | 14.08 B | ||||
| Total Asset | 1.47 B | ||||
| Retained Earnings | 220.75 M | ||||
| Working Capital | 214.55 M | ||||
| Net Asset | 1.47 B |
About Descartes Systems Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Descartes Systems Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Descartes Systems using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Descartes Systems Group based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Descartes Systems
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Descartes Systems position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Descartes Systems will appreciate offsetting losses from the drop in the long position's value.Moving together with Descartes Stock
The ability to find closely correlated positions to Descartes Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Descartes Systems when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Descartes Systems - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Descartes Systems Group to buy it.
The correlation of Descartes Systems is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Descartes Systems moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Descartes Systems moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Descartes Systems can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Descartes Systems Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.