Comparing to Foreign Entities: Benchmarks and Valuation
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Foreign entities.
In the benchmark group based on multiples for 2023-25, we only present foreign entities due to the lack of forecasts for the most similarprofile WSE entity, i.e. Spyrosoft. Global benchmarks for the software house sector are primarily Globant, Endava and Epam, while companies with a similar profile are also Grid Dynamics, Thoughtworks and Nagarro.
The group is also complemented by companies with exposure to similar customers, but with a slightly higher share of outsourcing and more diversified business (Cognizant, Capgemini), as well as relatively large players such as Kainos or Perficient and smaller representatives of the software house sector from Europe: Innofactor and IT Link. We note that Ailleron's result in 2023 is significantly burdened by the loss on the contract with Pekao, and it is not until 2024 that the company should report results closer to the target level.
A comparison with a group of foreign entities implies an Ailleron valuation of PLN 32.4 per share, 74% above the current market price, but these are mostly much larger entities from developed markets, so we do not include this valuation in our target price calculation.
Comparion to Spyrosoft
On the WSE, apart from the many times smaller Fabrity, the company with the most similar profile is Spyrosoft. We would not compare Ailleron to product-oriented IT companies such as Shoper, LiveChat, Asseco BS, R22 or Woodpecker, which constitute a separate segment of the IT market and offer, among other things, completely different opportunities for scaling the business and are characterised by higher target margins.
On the other hand, Comarch and Asseco, in addition to the product part, often execute contracts in the Fixed-Price format, retaining intellectual property rights to the developed software, unlike Time and Material Software Mind, which operates in the formula. A comparative valuation against Spyrosoft based on the skor. net profit for the shareholders of the parent company for the last 12 months implies a valuation of ALL of PLN 29.5 per share.
