Descartes Systems Group Inc
TSX:DSG
Intrinsic Value
The intrinsic value of one
DSG
stock under the Base Case scenario is
59.48
CAD.
Compared to the current market price of 91.78 CAD,
Descartes Systems Group Inc
is
Overvalued by 35%.
Let our AI compare Alpha Spread’s intrinsic value with external valuations from Simply Wall St, GuruFocus, ValueInvesting.io, Seeking Alpha, and others.
Let our AI break down the key assumptions behind the intrinsic value calculation for Descartes Systems Group Inc.
Fundamental Analysis
Descartes’ dependence on acquisitions for growth carries integration and valuation risks; overpaying for targets or failing to unify acquired platforms could erode returns and disrupt operational efficiency.
Heightened competition from other logistics technology providers, including enterprise software giants with deep pockets and emerging specialized tech startups, could exert pricing pressure and limit Descartes’ margin expansion.
Global economic uncertainty and potential disruptions in international trade policies may reduce shipping volumes and customs transactions, directly impacting the usage and revenue generation of Descartes’ core logistics and compliance solutions.
Descartes’ global, cloud-based logistics platform and proprietary Global Logistics Network create strong network effects, enabling it to offer end-to-end solutions for shippers, freight forwarders, and e-commerce retailers.
The firm’s disciplined M&A strategy has historically added complementary services to its suite of logistics technologies, enhancing cross-selling opportunities and strengthening customer retention.
Rising e-commerce demand and increasing complexity in cross-border trade regulations should boost adoption of Descartes’ compliance tools and real-time data tracking solutions, supporting elevated growth and durable customer relationships.
Revenue & Expenses Breakdown
Descartes Systems Group Inc
Earnings Waterfall
Descartes Systems Group Inc
Wall St
Price Targets
DSG Price Targets Summary
Descartes Systems Group Inc
The intrinsic value of one
DSG
stock under the Base Case scenario is
59.48
CAD.
Compared to the current market price of 91.78 CAD,
Descartes Systems Group Inc
is
Overvalued by 35%.