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Softchoice Corp (CA)
TSX:SFTC

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Softchoice Corp (CA)
TSX:SFTC
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Price: 26.31 CAD 6.3% Market Closed
Market Cap: CA$1.6B

EV/S

1.8
Current
5%
More Expensive
vs 3-y average of 1.7

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.

EV/S
1.8
=
Enterprise Value
CA$1.9B
/
Revenue
$769.8m

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.

EV/S
1.8
=
Enterprise Value
CA$1.9B
/
Revenue
$769.8m

Valuation Scenarios

Softchoice Corp (CA) is trading above its 3-year average

If EV/S returns to its 3-Year Average (1.7), the stock would be worth CA$25.13 (4% downside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-13%
Maximum Upside
+65%
Average Upside
24%
Scenario EV/S Value Implied Price Upside/Downside
Current Multiple 1.8 CA$26.31
0%
3-Year Average 1.7 CA$25.13
-4%
5-Year Average 1.5 CA$22.91
-13%
Industry Average 2.6 CA$39.23
+49%
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
CA$1.9B
/
Oct 2024
$769.8m
=
1.8
Current
CA$1.9B
/
Dec 2024
$777.4m
=
2.4
Forward
CA$1.9B
/
Dec 2025
$825.4m
=
2.3
Forward
CA$1.9B
/
Dec 2026
$869m
=
2.2
Forward

Forward EV/S shows whether today’s EV/S still looks high or low once future revenue are taken into account.

Peer Comparison

All Multiples
EV/S
P/E
All Countries
Close
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
Daiwa Tsushin Co Ltd
TSE:7116
2.7T JPY 1 17.3
ZA
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

In line with most companies in Canada
Percentile
33nd
Based on 2 384 companies
33nd percentile
1.8
Low
0 — 1.7
Typical Range
1.7 — 5.7
High
5.7 —
Distribution Statistics
Canada
Min 0
30th Percentile 1.7
Median 2.9
70th Percentile 5.7
Max 15 639 353.3

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.

SFTC Intrinsic Value
Not Available
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