Using the industry peer median P/E multiple (trailing + forward), Fair Isaac Corporation (FICO) has a fair value of $920.29 based on 5 comparable companies in the Software - Application industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Fair Isaac CorporationFICO | 25,651 | 39.4x | 25.1x |
| Garmin Ltd.GRMN | 45,583 | 27.6x | 33.5x |
| Celestica Inc.CLS | 31,833 | 38.0x | 72.6x |
| Cognizant Technology Solutions CorporationCTSH | 29,273 | 13.3x | 11.7x |
| PTC Inc.PTC | 17,233 | 23.8x | 29.0x |
| The Trade Desk, Inc.TTD | 10,391 | 24.0x | 19.5x |
| Industry Median | 24.0x | 29.0x | |
| (*) Profit after tax | 652 | 1,020 | |
| Equity Value | 15,640 | 29,566 | |
| (/) Outstanding shares | 25 | 25 | |
| Fair Price | $637 | $1204 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.