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DSG.TO (DSG) Fair Value & Analysis

Technology · CA · Market cap C$8.7B (≈ $6.3B) · ISIN CA2499061083

What is DSG.TO really worth?

DT DSG.TO DSG · TO
PriceC$109.13
Fair ValueC$54.57
Upside−50.0%
Quality72/100

A solid business, but trading 100% above our fair value of C$54.57.

As of Aug 13, 2026, the fair value of DSG.TO is C$54.57 per share against a price of C$109.13, so the fair value sits 50% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

Healthy Growth (revenue 5y +16.3 %/yr)
Highly profitable · 23.4% net margin
Low debt · generates free cash flow
Wide moat 74/100

Risks

!Evidence only low, so the estimate is less certain
Evidence: Low Range C$40.93 – C$68.21

Fair value as of: Aug 13, 2026

From 24 valuation models · updated 23 days ago

Fair value updated Aug 13, 2026, revised from C$39.19 to C$54.57 (+39.2%) since Jul 12, 2026. Share price +1.7% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • A high-quality business (quality 72/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (C$68.21). The favourable scenario is already priced in.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.

Price vs Fair Value (5 years)

C$175.34 C$70.47 Fair Value C$54.57 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range C$70.47 – C$175.34 · fair‑value band C$40.93 – C$68.21 · the C$109.13 price screens above the C$54.57 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

DSG.TO (DSG) currently trades at C$109.13, while our model-based Fair Value estimate is C$54.57, implying the stock looks roughly 100.0% overvalued today. The Quality Score stands at 72/100 (solid quality), in the Technology sector. Bull case: the DCF Models group reads highest at a median of C$73.65 per share, and 0 of the 24 models we run sit above the C$109.13 price. Bear case: the Asset-Based group reads lowest at C$12.55, and 24 of the 24 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, DSG.TO generated revenue of C$754M at a net margin of 23.4%. Revenue grew 14.7% year over year. It earns a return on equity of 11.4%. The balance sheet holds a net cash position of C$345M. Fundamentals as of Aug 13, 2026

Our scenario range runs from C$40.93 (bear case) to C$68.21 (bull case); at C$109.13, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 28% below its 52-week high and 28% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at −36% fair-value upside, at −50%, DSG screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 7 months have passed since. In that time the company retained roughly C$1.67 per share, which is 3.1 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF C$43.77 C$78.00 C$137.91 77
Growth DCF C$43.04 C$73.09 C$123.09 76
Owner Earnings C$41.44 C$73.65 C$130.05 74
All 24 models by family
DCF Models
FCF DCF C$43.77 C$78.00 C$137.91 77
Owner Earnings C$41.44 C$73.65 C$130.05 74
5Y Revenue Exit C$34.17 C$56.32 C$86.63 71
5Y EBITDA Exit C$49.60 C$89.19 C$140.21 73
5Y P/E Exit C$42.74 C$74.58 C$111.91 69
10Y Revenue Exit C$36.22 C$58.47 C$93.29 65
10Y EBITDA Exit C$47.23 C$82.46 C$138.57 66
10Y P/E Exit C$42.72 C$71.80 C$114.66 62
Earnings-Based
Graham-Dodd C$13.25 C$68.64 C$94.91 64
Lynch FV C$18.77 C$26.82 C$34.86 61
PEG = 1.0 C$18.77 C$26.82 C$34.86 57
EPV C$23.82 C$26.93 C$29.62 74
Multiples
P/E Multiple C$40.93 C$54.57 C$68.21 63
P/S Multiple C$24.85 C$33.13 C$41.41 58
P/B Multiple C$24.85 C$33.13 C$41.41 55
EV/EBIT C$54.55 C$71.36 C$88.17 66
EV/EBITDA C$55.94 C$73.21 C$90.48 67
EV/Revenue C$29.62 C$40.54 C$51.47 54
Asset-Based
NCAV (Graham) C$9.37 C$12.55 C$18.73 54
Growth DCF
Growth DCF C$43.04 C$73.09 C$123.09 76
Rev-Margin DCF C$34.17 C$55.80 C$84.79 72
Economic Profit
Residual Income C$16.39 C$18.25 C$28.67 70
ROIC Compounder C$26.10 C$34.16 C$44.75 72
Growth Earnings
Growth-Adj P/E C$33.00 C$47.14 C$61.28 67

Widest divergence: DCF Models (C$73.65) versus Asset-Based (C$12.55). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 39.1
P/S ratio 8.79 P/E × margin
EPS (TTM) C$2.79 price ÷ EPS = P/E 39.1
Net margin 22.5% FY2026
Return on equity 11.4% TTM
Return on assets (EBIT) 10.5% avg 5y
More key figures
Profitability
Operating margin 32.3% TTM
Growth
Revenue (TTM) C$754M TTM
Revenue growth (YoY) +14.7% 3y avg +15.2%
EPS growth (YoY) +34.1%
Balance sheet & cash flow
Free cash flow C$266M FY2026
Net cash C$345M FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 72/100

Of which business quality 72 · Market factors (momentum, volatility) 43

Profitability 53
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 94
Earnings quality: real cash, not paper profit
Fin. Strength 92
Balance sheet, leverage, solvency risk
Investment 57
Disciplined investing over empire-building
Low Volatility 72
Calm price path (market factor)
Momentum 37
Price trend over the last 3–12 months (market factor)
52W Momentum 21
Distance to the 52-week high (market factor)
Net Issuance 78
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

The Descartes Systems Group Inc. provides global logistics technology solutions in the United States, Europe, the Middle East, Africa, Canada, and the Asia Pacific. Its Logistics Technology platform offers a range of modular, interoperable web and wireless logistics management solutions.

Full company description

The Descartes Systems Group Inc. provides global logistics technology solutions in the United States, Europe, the Middle East, Africa, Canada, and the Asia Pacific. Its Logistics Technology platform offers a range of modular, interoperable web and wireless logistics management solutions. The company offers a suite of solutions that include routing, mobile, and telematics; transportation management; ecommerce, shipping, and fulfillment; customs and regulatory compliance; global trade intelligence; broker and forwarder enterprise systems; and B2B messaging and connectivity services. It also provides its customers to use its modular and technology solutions to route, track, and measure delivery resources; plan, allocate, and execute shipments; rate, audit, and pay transportation invoices; access and analyze global trade data; research and perform trade tariff and duty calculations; file customs and security documents for imports and exports; and various other logistics processes. In addition, the company offers consulting, implementation, and training services, as well as maintenance and support services. It serves transportation providers, such as air, ocean, and truck modes; logistics service providers, including third-party logistics providers, freight forwarders, and customs brokers; and distribution-intensive companies, such as retailers, manufacturers, distributors, and mobile business service providers through subscription, transactional or perpetual license basis. The Descartes Systems Group Inc. was incorporated in 1981 and is headquartered in Waterloo, Canada.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

DSG.TO reported revenue of $743M in FY2026 versus $425M in FY2022, a compound +15.0%/yr. Reported net income was $167M in FY2026, compounding +17.9%/yr from FY2022.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
C$743M
Latest YoY
+14.2%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.2%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+16.3%
Avg. revenue growth/yr (28Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.7%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+25.7% · in CAD
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+25.7%
Dividend yield0.0%
Trend Two data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5Y 25.7% vs 10Y 21.6%, picking up
Operating margin (EBIT) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.20.5% (2021) → 32.3% (2026) · rising
Worst earnings drop48% (2014) · in CAD
Revenue +15.0%/yr
FY22 $425M
FY23 $486M
FY24 $573M
FY25 $651M
FY26 $743M
Net income +17.9%/yr
FY22 $86.3M
FY23 $102M
FY24 $116M
FY25 $143M
FY26 $167M
Character of growth · EPS growth decomposed (2015-2026) +22.4 % p.a.
Revenue per share +13.0 %

of which total revenue +15.0 % · buybacks/dilution −1.7 %

EBIT margin +7.8 %
Tax rate +0.3 %
Residual (interest, one-offs) +0.0 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

DSG screens 100% overvalued. Compare with SAP SE →

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Cite: Fair Value Calculator (2026). "DSG.TO Fair Value". https://www.fairvalue-calculator.com/stock/DSG.TO

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

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Frequently asked questions

Is DSG.TO (DSG) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of C$54.57 versus a price of C$109.13, about −50% upside (overvalued).
What is the fair value of DSG?
Our model-based fair value for DSG.TO is C$54.57 (as of Aug 13, 2026), built from audited fundamentals. The current price: C$109.13.
What is the quality score of DSG?
DSG.TO has a Quality Score of 72/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for DSG.TO (DSG)?
Our model-based price target is the fair value of C$54.57 (as of Aug 13, 2026) from 24 valuation models. Cautious scenario C$40.93, optimistic scenario C$68.21. It is a calculation from audited fundamentals, not an analyst target.
What is the DSG.TO stock forecast for 2026?
Our models put fair value at C$54.57, about −50% upside versus a price of C$109.13 (overvalued). Cautious scenario C$40.93, optimistic scenario C$68.21. The calculation is refreshed regularly with new filings.
What is the revenue of DSG.TO (DSG)?
DSG.TO reported trailing-twelve-month revenue of about C$754M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of DSG?
The net profit margin of DSG.TO is about 23.4%, meaning it keeps roughly 23.4% of revenue as net income. Based on the latest reported figures.
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