Descartes Systems Group Inc (DSGX) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Descartes Systems Group Inc $86.75, price $80.24, upside +8.1%, quality 73 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 23, 2026.
How to read this chart
60‑month range $56.80 – $122.50 · fair‑value band $65.05 – $108.43 · the $80.24 price screens below the $86.75 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 23, 2026.
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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.
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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.
Stock analysis
Descartes Systems Group Inc (DSGX) currently trades at $80.24, while our model-based Fair Value estimate is $86.75, implying the stock looks roughly 7.5% fairly valued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $74.27 per share, and 2 of the 24 models we run sit above the $80.24 price.
Bear case: the Asset-Based group reads lowest at $12.58, and 22 of the 24 models stay below the price. Evidence for this calculation is high.
Scenario range: $65.05 (bear) to $108.43 (bull), the price of $80.24 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 73/100 (solid quality), in the Technology sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Descartes Systems Group Inc reported revenue of $745M in FY2026 versus $425M in FY2022, a compound +15.1%/yr. Reported net income was $167M in FY2026, compounding +18.0%/yr from FY2022.
Key figures
Market cap $7.0B · P/E ratio 39.9 · P/S ratio 8.97 · EPS (TTM) $2.01 · Net margin 22.5% · Return on equity 11.4% · Return on assets (EBIT) 10.4% · Operating margin 32.9%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 56 out of 100 (low confidence).
What moves the price
The share trades about 20% below its 52-week high and 28% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Technology peers we cover trades at −13% fair-value upside, at 8%, DSGX screens cheaper than that median.
Fair Value models
Bear $65.05Fair Value $86.75Bull $108.43
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 8 months old). Earnings retained since then ($1.30 per share) are deliberately not added.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 ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+14.4%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+15.3%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+16.4%
Start year 2021 (pandemic). Over 10 years: +14.9% a year
Revenue growth 29 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+13.2%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+25.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year+25.8%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘ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.26% vs 22%, picking up
Profit margin 2021 to 2026 ⓘ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.21% → 32%
Start year 2021 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes less growth than the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+10.5%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+9.4%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +8.0% a year for the price and +6.8% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (93 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.
Compare Descartes Systems Group Inc with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Software - Application · 702 stocks
Beats the industry median on 8/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score73 · Top 25%
Fair Value upside+10% · Above median
Profitability
Return on equity (TTM)11% · Above median
Return on assets8% · Top 25%
Net margin (TTM)23% · Top 25%
Operating margin (TTM)33% · Top 25%
Growth and dividend
Revenue growth15% · Above median
Balance sheet
Debt / equity0.02× · Below median
Valuation Multiplesvs Software - Application median · lower = cheaper
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Cite: Fair Value Calculator (2026). "Descartes Systems Group Inc Fair Value". https://www.fairvalue-calculator.com/stock/DSGX
Frequently asked questions
Is Descartes Systems Group Inc (DSGX) overvalued or undervalued?
As of Sep 23, 2026, our model estimates a fair value of $86.75 versus a price of $80.24, about +8% upside (fairly valued).
What is the fair value of DSGX?
Our model-based fair value for Descartes Systems Group Inc is $86.75 (as of Sep 23, 2026), built from audited fundamentals. The current price: $80.24.
What is the quality score of DSGX?
Descartes Systems Group Inc has a Quality Score of 73/100. 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 Descartes Systems Group Inc (DSGX)?
Our model-based price target is the fair value of $86.75 (as of Sep 23, 2026) from 24 valuation models. Cautious scenario $65.05, optimistic scenario $108.43. It is a calculation from audited fundamentals, not an analyst target.
What is the Descartes Systems Group Inc stock forecast for 2026?
Our models put fair value at $86.75, about +8% upside versus a price of $80.24 (fairly valued). Cautious scenario $65.05, optimistic scenario $108.43. The calculation is refreshed regularly with new filings.
What is the revenue of Descartes Systems Group Inc (DSGX)?
Descartes Systems Group Inc reported trailing-twelve-month revenue of about $754M (latest available figure, as of Sep 23, 2026).
What growth is priced into Descartes Systems Group Inc (DSGX)?
For today's price to be fair in a discounted-cash-flow model, Descartes Systems Group Inc would have to grow free cash flow by +10.5 % per year for five years (discount rate 8.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +16.4 % per year. As of Sep 23, 2026.
What discount rate (WACC) does the fair value of DSGX use?
Our models discount Descartes Systems Group Inc at 8.5 %: a base by market capitalisation (mid), damped by beta 0.19, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Descartes Systems Group Inc that is +10.5 % per year a year over ten years, using the same discount rate (8.5 %) and the same formula as our fair value.
How much growth has Descartes Systems Group Inc (DSGX) delivered so far?
Over the past 5 years revenue at Descartes Systems Group Inc grew +16.4 % a year. The price currently implies +10.5 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Descartes Systems Group Inc (DSGX) growing?
The median revenue growth in the sector is +8.4 % a year. That is the yardstick for the growth priced into Descartes Systems Group Inc (+10.5 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Descartes Systems Group Inc (DSGX)?
The free-cash-flow yield on the price is 3.79 %: that much free cash flow Descartes Systems Group Inc produces per unit of market value. When it exceeds the discount rate of our models (8.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Descartes Systems Group Inc (DSGX)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Descartes Systems Group Inc it is $86.75 per share (as of Sep 23, 2026), against a price of $80.24. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Descartes Systems Group Inc stock overvalued or undervalued in 2026?
As of Sep 23, 2026, DSGX trades below its calculated fair value: price $80.24, fair value $86.75, a gap of about +8% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of DSGX?
No. The price is what the market pays today ($80.24); the fair value is what the company's own numbers justify ($86.75). For Descartes Systems Group Inc the two are $6.51 per share apart. That gap is exactly why we show both numbers side by side.
How much is Descartes Systems Group Inc worth?
The market values Descartes Systems Group Inc at about $7.0B (market capitalisation, as of Sep 23, 2026). Per share that is $80.24; our models calculate a fair value of $86.75 per share.
What do the bullish and bearish scenarios say about DSGX?
Our models span a range for Descartes Systems Group Inc: cautious scenario $65.05, base $86.75, optimistic $108.43 per share (as of Sep 23, 2026, price $80.24). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of DSGX?
Descartes Systems Group Inc trades at a price-to-earnings ratio of 39.9 (as of Sep 23, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $86.75 is built from several models across several years. Other multiples: PEG 1.5, P/B 4.3, P/S 9.2, EV/EBITDA 20.6.
What is the PEG ratio of DSGX?
The PEG ratio of Descartes Systems Group Inc is 1.49 (P/E divided by earnings growth, as of Sep 23, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Descartes Systems Group Inc (DSGX)?
Balance-sheet figures for Descartes Systems Group Inc (as of Sep 23, 2026): return on equity 11.4%, debt of 0.02 per unit of equity. They feed the Quality Score of 73/100, which measures business quality independently of the share price.
How far is DSGX from its 52-week high?
Descartes Systems Group Inc trades at $80.24, about 20% below its 52-week high of $100.65 and 28% above the low of $62.82 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of $86.75 is for.
Which stocks are comparable to Descartes Systems Group Inc?
From the same area (Technology) we also value SAP SE, Shopify Inc, Uber Technologies, Inc, Salesforce, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Descartes Systems Group Inc stock attractive at the current price?
The data as of Sep 23, 2026: price $80.24, calculated fair value $86.75 (+8%), Quality Score 73/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of DSGX calculated?
We run Descartes Systems Group Inc through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $86.75, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.1 % above its aggregate fair value. Descartes Systems Group Inc currently trades 8 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Descartes Systems Group Inc (DSGX)?
The closing price on Sep 23, 2026 was $80.24. Our model-based fair value is $86.75, about +8% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Descartes Systems Group Inc right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. The price sits in the lower half of our model range, the side with the larger margin of safety. The data supports the verdict: every model runs on fully documented inputs.
Where does the earnings growth of Descartes Systems Group Inc (DSGX) come from?
Earnings per share at Descartes Systems Group Inc grew +22.4 % a year from 2015 to 2026. Broken into its drivers: revenue per share +13.1 %, EBIT margin +7.8 %, tax rate +0.3 %, residual (interest, one-offs) +0.0 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Descartes Systems Group Inc
How large is the market capitalisation of Descartes Systems Group Inc (DSGX)?
The market capitalisation of Descartes Systems Group Inc is $7.0B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Descartes Systems Group Inc (DSGX)?
The price-to-sales ratio of Descartes Systems Group Inc is 8.97 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Descartes Systems Group Inc (DSGX)?
Earnings per share at Descartes Systems Group Inc are $2.01 (price ÷ EPS = P/E 39.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Descartes Systems Group Inc (DSGX)?
The net margin of Descartes Systems Group Inc is 22.5% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Descartes Systems Group Inc (DSGX)?
The return on equity (ROE) of Descartes Systems Group Inc is 11.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Descartes Systems Group Inc (DSGX)?
On an EBIT basis the return on assets of Descartes Systems Group Inc is 10.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Descartes Systems Group Inc (DSGX)?
The operating margin of Descartes Systems Group Inc is 32.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Descartes Systems Group Inc (DSGX)?
Revenue at Descartes Systems Group Inc is growing +14.7% versus a year earlier (3y avg +15.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Descartes Systems Group Inc (DSGX)?
Earnings per share at Descartes Systems Group Inc are growing +34.1% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Descartes Systems Group Inc (DSGX) hold?
Descartes Systems Group Inc holds more cash than debt, $346M net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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Broad data
Sep 23, 2026