Software AG
XETRA:SOW
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P/FCFE
Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.
Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.
Valuation Scenarios
If P/FCFE returns to its 5-Year Average (4.2), the stock would be worth €-1.17 (103% downside from current price).
| Scenario | P/FCFE Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | -133.3 | €36.68 |
0%
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| 5-Year Average | 4.2 | €-1.17 |
-103%
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| Industry Average | 27.8 | €-7.65 |
-121%
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| Country Average | 22 | €-6.05 |
-116%
|
Forward P/FCFE
Today’s price vs future free cash flow to equity
Peer Comparison
| Market Cap | P/FCFE | P/E | ||||
|---|---|---|---|---|---|---|
| DE |
|
Software AG
XETRA:SOW
|
2.7B EUR | -133.3 | 158.4 | |
| US |
|
Microsoft Corp
NASDAQ:MSFT
|
3.1T USD | 44 | 24.6 | |
| US |
|
Oracle Corp
NYSE:ORCL
|
494B USD | 30.7 | 30.5 | |
| US |
|
Palo Alto Networks Inc
NASDAQ:PANW
|
147.8B USD | 42 | 99.3 | |
| US |
|
CrowdStrike Holdings Inc
NASDAQ:CRWD
|
115.4B USD | 95.2 | -710.4 | |
| US |
|
ServiceNow Inc
NYSE:NOW
|
94.5B USD | 20.4 | 53.8 | |
| US |
V
|
VMware Inc
XETRA:BZF1
|
58B EUR | 18.6 | 47.9 | |
| US |
|
Fortinet Inc
NASDAQ:FTNT
|
64.1B USD | 28.8 | 34.6 | |
| US |
|
Xperi Holding Corp
LSE:0M2A
|
54.6B USD | 869.5 | 491.7 | |
| CN |
K
|
Knowledge Atlas Technology JSC Ltd
HKEX:2513
|
382.1B HKD | -269.9 | -70.8 | |
| CN |
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MiniMax Group Inc
HKEX:100
|
217.8B HKD | 54.3 | -14.8 |
Market Distribution
| Min | 0.3 |
| 30th Percentile | 12.8 |
| Median | 22 |
| 70th Percentile | 33.7 |
| Max | 8 508.8 |
Other Multiples
Software AG
Glance View
Software AG, a stalwart in the world of enterprise software, originated from Darmstadt, Germany in 1969 and has since etched its mark by fostering digital transformation across diverse industries. Built on the principles of innovation and connectivity, the company is renowned for its deep expertise in integration software and business process management. Its flagship products, such as the webMethods integration platform and the ARIS process modeling suite, serve as essential tools for organizations looking to streamline operations and enhance agility. Software AG's solutions enable enterprises to connect disparate IT systems, manage data with precision, and gain valuable insights, driving operational efficiency and strategic decision-making. The business model of Software AG capitalizes on its robust portfolio of products and services, deriving revenue from software licenses, subscription models, and a comprehensive range of professional services. With an emphasis on cloud-based solutions, the company cultivates long-term partnerships with its clients, generating recurring income through subscriptions and maintenance contracts. By facilitating digitalization initiatives, Software AG not only strengthens its clients' competitive edge but also secures a steady stream of income through the constant evolution and enhancement of its software offerings. This symbiotic relationship with its client base underpins its revenue models, making Software AG an enduring champion in the enterprise software sector.
