Softchoice Corp (CA)
TSX:SFTC
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EV/S
Enterprise Value to Sales (EV/S) ratio compares a company`s total enterprise value to its revenue. It shows how much investors are paying for each dollar of the company`s sales, including both equity and debt.
Enterprise Value to Sales (EV/S) ratio compares a company`s total enterprise value to its revenue. It shows how much investors are paying for each dollar of the company`s sales, including both equity and debt.
Valuation Scenarios
If EV/S returns to its 3-Year Average (1.7), the stock would be worth CA$25.13 (4% downside from current price).
| Scenario | EV/S Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 1.8 | CA$26.31 |
0%
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| 3-Year Average | 1.7 | CA$25.13 |
-4%
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| 5-Year Average | 1.5 | CA$22.91 |
-13%
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| Industry Average | 2.6 | CA$39.23 |
+49%
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| Country Average | 2.9 | CA$43.39 |
+65%
|
Forward EV/S
Today’s price vs future revenue
| Today's Enterprise Value | Revenue | Forward EV/S | ||
|---|---|---|---|---|
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CA$1.9B
|
/ |
Oct 2024
$769.8m
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= |
|
|
CA$1.9B
|
/ |
Dec 2024
$777.4m
|
= |
|
|
CA$1.9B
|
/ |
Dec 2025
$825.4m
|
= |
|
|
CA$1.9B
|
/ |
Dec 2026
$869m
|
= |
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Forward EV/S shows whether today’s EV/S still looks high or low once future revenue are taken into account.
Peer Comparison
| Market Cap | EV/S | P/E | ||||
|---|---|---|---|---|---|---|
| CA |
|
Softchoice Corp (CA)
TSX:SFTC
|
1.6B CAD | 1.8 | 29.6 | |
| US |
|
TD Synnex Corp
NYSE:SNX
|
18.2B USD | 0.3 | 18.6 | |
| US |
|
CDW Corp
NASDAQ:CDW
|
17.5B USD | 0.9 | 16.4 | |
| JP |
D
|
Daiwa Tsushin Co Ltd
TSE:7116
|
2.7T JPY | 1 | 17.3 | |
| ZA |
D
|
Datatec Ltd
JSE:DTC
|
16B ZAR | 0.2 | 12 | |
| CN |
|
Unisplendour Corp Ltd
SZSE:000938
|
89.2B CNY | 1 | 52.9 | |
| US |
|
Arrow Electronics Inc
NYSE:ARW
|
9.6B USD | 0.4 | 16.7 | |
| TW |
|
WT Microelectronics Co Ltd
TWSE:3036
|
260.7B TWD | 0.3 | 19.6 | |
| US |
|
Avnet Inc
NASDAQ:AVT
|
6.4B USD | 0.4 | 30.8 | |
| TW |
|
WPG Holdings Ltd
TWSE:3702
|
161.5B TWD | 0.3 | 16.7 | |
| JP |
|
Canon Marketing Japan Inc
TSE:8060
|
772.1B JPY | 0.9 | 17 |
Market Distribution
| Min | 0 |
| 30th Percentile | 1.7 |
| Median | 2.9 |
| 70th Percentile | 5.7 |
| Max | 15 639 353.3 |
Other Multiples
Softchoice Corp (CA)
Glance View
Nestled within the vibrant tech landscape of Canada, Softchoice Corp has carved a niche for itself as a pivotal player in the world of IT solutions and services. Originating from a modest beginning in 1989, Softchoice evolved in response to the rapid pace of technological change, cementing its role as a bridge between complex technology needs and effective solutions. It focuses on offering extensive expertise across cloud computing, data center services, digital workplaces, and IT asset management. Its core competence lies in helping businesses navigate the increasingly intricate IT environment, ensuring that organizations are not just keeping up with technological advancements but are equipped to leverage them for strategic advantage. The company’s approach is deeply rooted in its commitment to customer-centric solutions. Softchoice generates revenue by advising clients on IT product selections and facilitating their acquisition, maintenance, and deployment. Through partnerships with industry giants like Microsoft, Amazon Web Services, and Cisco, it offers an array of tailored solutions that address specific business challenges and opportunities. The company’s revenue streams, therefore, are derived not just from the direct sale of technology products but significantly from services, subscriptions, and solutions that enhance IT efficiency and innovation for its clients. This nuanced business model ensures that Softchoice is not merely a vendor but a true strategic partner in its clients' digital transformation journeys.