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The Sage Group (SGE) Fair Value & Analysis

Technology · GB · Market cap 7.8B GBX

TS The Sage Group SGE · LSE
Price£8.06
Fair Value£8.06
Upside0.0%
Quality95/100
Evidence: High Range £5.34 – £10.24

Fair value as of: Jun 24, 2026

From 26 valuation models · updated 5 days ago

Share price −1.1% over the past month.

Price vs Fair Value (12 months)

£12.06 £7.58 Fair Value £8.06 Jun 2025 Jun 2026

12‑month range £7.58 – £12.06 · fair‑value band £5.34 – £10.24 · the £8.06 price screens above the £8.06 fair value. As of Jun 24, 2026.

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Analysis

The Sage Group (SGE) currently trades at £8.06, while our model-based Fair Value estimate is £8.06 — implying the stock looks roughly 0.0% overvalued today. We read business quality at 95/100 (high quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium — the entry price still matters most (evidence: high).

Over the trailing twelve months, The Sage Group generated revenue of £2.6B at a net margin of 14.6%. Revenue grew 9.7% year over year. It earns a return on equity of 75.6%. Net debt stands at £1.2B. Fundamentals as of Jun 24, 2026

Key figures & financial health

Revenue (TTM) 2.6B GBX
Revenue growth (YoY) +9.7%
Net margin 14.6%
Return on equity 75.6%
Free cash flow 498M GBX FY2025
P/E ratio 21.8
More key figures
Operating margin 22.3%
EPS (TTM) £0.4000
Dividend yield 2.5%
EPS growth (YoY) +14.3%
Net debt 1.2B GBX FY2025

Figures from reported company fundamentals (EODHD) · as of Jun 24, 2026. TTM = trailing twelve months.

About the company

The Sage Group plc, together with its subsidiaries, offers technology solutions and services for small and medium businesses in North America, Europe, the United Kingdom, Ireland, Africa and Asia-Pacific. It offers Sage Intacct, cloud accounting and financial management software for mid-sized and growing businesses; Sage People, an integrated HR and Payroll solution; Sage 200, a scalable management solution; Sage X3, a flexible, intuitive, and tailored business solution; Sage Accounting, a cloud software for managing invoicing, cash flow, tax, and more, from anywhere. Ideal for small businesses; Sage Payroll for start-ups and small businesses manage their payroll; and Sage HR for small and mid-sized businesses for record management, leave management, staff scheduling, and expenses services. The company also provides Sage 50 accounts, that manages accounting, inventory, and payments, as well as Sage 50 payroll. The Sage Group plc was formerly known as Ployfinal Public Limited Company…

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

The Sage Group reported revenue of £2.5B in FY2025 versus £1.8B in FY2021, a compound +8.0%/yr. Reported net income was £369M in FY2025, compounding +6.7%/yr from FY2021.

Revenue +8.0%/yr
FY21 £1.8B
FY22 £1.9B
FY23 £2.2B
FY24 £2.3B
FY25 £2.5B
Net income +6.7%/yr
FY21 £285M
FY22 £260M
FY23 £211M
FY24 £323M
FY25 £369M

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Frequently asked questions

Is The Sage Group (SGE) undervalued?
As of Jun 24, 2026, our model estimates a fair value of £8.06 versus a price of £8.06 — about −0% (overvalued). Model-based estimate, not financial advice.
What is the fair value of SGE?
Our 21-model fair value for The Sage Group is £8.06 (as of Jun 24, 2026), built from audited fundamentals. The current price is £8.06.
What is the quality score of SGE?
The Sage Group has a Quality Score of 95/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of The Sage Group (SGE)?
The Sage Group reported trailing-twelve-month revenue of about £2.6B (latest available figure, as of Jun 24, 2026).
What is the net profit margin of SGE?
The net profit margin of The Sage Group is about 14.6%, meaning it keeps roughly 14.6% of revenue as net income. Based on the latest reported figures.
Does The Sage Group pay a dividend?
The Sage Group currently shows a dividend yield of about 2.48% relative to its recent price (as of Jun 24, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.