Descartes Systems Valuation

DSGX Stock  USD 91.53  0.55  0.60%   
At this time, the firm appears to be overvalued. Descartes Systems shows a prevailing Real Value of $75.97 per share. The current price of the firm is $91.53. Our model computes the value of Descartes Systems from reviewing the firm fundamentals such as Profit Margin of 0.20 %, current valuation of 7.56 B, and Shares Outstanding of 85.18 M as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise acquiring undervalued instruments and dropping overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
Price Book
6.6078
Enterprise Value
7.6 B
Enterprise Value Ebitda
35.3906
Price Sales
13.6518
Forward PE
47.619
Overvalued
Today
91.53
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.
Our valuation method for Descartes Systems Group is useful when determining the fair value of the Descartes stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Descartes Systems. 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  91.53 Real  75.97 Target  84.78 Hype  91.53 Naive  87.69
The real value of Descartes Stock, also known as its intrinsic value, is the underlying worth of Descartes Systems Company, which is reflected in its stock price. It is based on Descartes Systems' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. 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.
75.97
Real Value
100.68
Upside
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:
Earnings
Estimates (0)
LowProjectedHigh
0.370.420.45
Details
Hype
Prediction
LowEstimatedHigh
89.9591.5393.11
Details
Naive
Forecast
LowNext ValueHigh
86.1187.6989.27
Details
14 Analysts
Consensus
LowTarget PriceHigh
77.1584.7894.11
Details

Descartes Systems Investments

(104 Million)

Descartes Systems Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Descartes Systems's current stock value. Our valuation model uses many indicators to compare Descartes Systems value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Descartes Systems competition to find correlations between indicators driving Descartes Systems's intrinsic value. More Info.
Descartes Systems Group is one of the top stocks in price to sales category among related companies. It is one of the top stocks in price to book category among related companies fabricating about  0.48  of Price To Book per Price To Sales. The ratio of Price To Sales to Price To Book for Descartes Systems Group is roughly  2.07 . Price To Book Ratio is likely to rise to 6.36 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Descartes Systems by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Descartes Systems' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Descartes Systems' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Descartes Systems' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Descartes Systems and how it compares across the competition.

About Descartes Systems Valuation

The stock valuation mechanism determines the current worth of Descartes Systems Group on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Descartes Systems Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Descartes Systems based exclusively on its fundamental and basic technical indicators. By analyzing Descartes Systems's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Descartes Systems's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Descartes Systems. We calculate exposure to Descartes Systems's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Descartes Systems's related companies.
Last ReportedProjected for 2024
Gross Profit375.6 M394.4 M
Pretax Profit Margin 0.26  0.28 
Operating Profit Margin 0.30  0.31 
Net Profit Margin 0.20  0.21 
Gross Profit Margin 0.65  0.55 

8 Steps to conduct Descartes Systems' Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Descartes Systems' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Descartes Systems' valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Descartes Systems' financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Descartes Systems' revenue streams: Identify Descartes Systems' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Descartes Systems' industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Descartes Systems' growth potential: Evaluate Descartes Systems' management, business model, and growth potential.
  • Determine Descartes Systems' financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Descartes Systems' estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

Descartes Systems Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Descartes Systems does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding86.8 M
Quarterly Earnings Growth Y O Y0.088
Forward Price Earnings47.619

Descartes Systems Current Valuation Indicators

Valuation refers to the process of determining the present value of Descartes Systems Group and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Descartes we look at many different elements of the entity such as Descartes's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Descartes Systems' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Descartes Systems' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Descartes Systems, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Descartes Systems' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Descartes Systems' worth.
When determining whether Descartes Systems offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Descartes Systems' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Descartes Systems Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Descartes Systems Group Stock:
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 tightly coupled with the direction of predictive economic indicators such as signals in price.
Note that the Descartes Systems information on this page should be used as a complementary analysis to other Descartes Systems' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.

Complementary Tools for Descartes Stock analysis

When running Descartes Systems' price analysis, check to measure Descartes Systems' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Descartes Systems is operating at the current time. Most of Descartes Systems' value examination focuses on studying past and present price action to predict the probability of Descartes Systems' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Descartes Systems' price. Additionally, you may evaluate how the addition of Descartes Systems to your portfolios can decrease your overall portfolio volatility.
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Is Descartes Systems' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Descartes Systems. If investors know Descartes will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Descartes Systems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.088
Earnings Share
1.31
Revenue Per Share
6.735
Quarterly Revenue Growth
0.184
Return On Assets
0.0737
The market value of Descartes Systems is measured differently than its book value, which is the value of Descartes that is recorded on the company's balance sheet. Investors also form their own opinion of Descartes Systems' value that differs from its market value or its book value, called intrinsic value, which is Descartes Systems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Descartes Systems' market value can be influenced by many factors that don't directly affect Descartes Systems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Descartes Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine if Descartes Systems is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Descartes Systems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.