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Temenos AG (TEMN) Fair Value & Analysis

Technology · CH · Market cap CHF 4.8B

TA Temenos AG TEMN · SW
PriceCHF 70.85
Fair ValueCHF 86.51
Upside+22.1%
Quality84/100
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Healthy Growth
Highly profitable · 26.2% net margin
High debt · generates free cash flow
Mixed vs. peers (8/15)
Wide moat 78/100
Evidence: High Range CHF 52.86 – CHF 108.14 Share as image

Fair value as of: Jul 16, 2026

From 26 valuation models · updated 25 days ago

Fair value updated Jul 16, 2026, revised from CHF 87.33 to CHF 86.51 (−0.9%) since Jun 24, 2026. Share price +3.1% over the past month.

A strong business, screening 22% undervalued on our models.

What matters now

  • A fairly wide model range (CHF 52.86 to CHF 108.14) leaves room in how you read the outcome.
  • Our model range runs from CHF 52.86 (bear) to CHF 108.14 (bull), base CHF 86.51. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 84/100 (high quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

CHF 139.74 CHF 46.24 Fair Value CHF 86.51 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range CHF 46.24 – CHF 139.74 · fair‑value band CHF 52.86 – CHF 108.14 · the CHF 70.85 price screens below the CHF 86.51 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Temenos AG (TEMN) currently trades at CHF 70.85, while our model-based Fair Value estimate is CHF 86.51, implying the stock looks roughly 22.1% undervalued today. The Quality Score stands at 84/100 (high quality), in the Technology sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Temenos AG generated revenue of CHF 1.1B at a net margin of 26.2%. Revenue grew 8.9% year over year. It earns a return on equity of 53.0%. Net debt stands at CHF 605M. Fundamentals as of Jul 16, 2026

Our scenario range runs from CHF 52.86 (bear case) to CHF 108.14 (bull case); at CHF 70.85, the current price sits within 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 17% below its 52-week high and 30% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -27% fair-value upside, at 22%, TEMN screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF CHF 49.89 CHF 83.61 CHF 134.47 80
Residual Income CHF 35.69 CHF 57.24 CHF 1,078 76
Rev-Margin DCF CHF 30.41 CHF 50.85 CHF 75.58 74
All 26 models by family
DCF Models
FCF DCF CHF 49.56 CHF 84.57 CHF 138.30 38
Owner Earnings CHF 61.15 CHF 103.16 CHF 167.65 31
5Y Revenue Exit CHF 30.41 CHF 50.48 CHF 75.93 39
5Y EBITDA Exit CHF 65.55 CHF 118.51 CHF 182.02 41
5Y P/E Exit CHF 49.84 CHF 88.10 CHF 129.34 38
10Y Revenue Exit CHF 35.97 CHF 56.18 CHF 83.46 36
10Y EBITDA Exit CHF 59.07 CHF 103.22 CHF 165.18 37
10Y P/E Exit CHF 49.14 CHF 82.19 CHF 124.60 35
Earnings-Based
Graham-Dodd CHF 29.41 CHF 107.17 CHF 144.61 54
Lynch FV CHF 25.49 CHF 36.42 CHF 47.35 50
PEG = 1.0 CHF 25.49 CHF 36.42 CHF 47.35 46
EPV CHF 52.10 CHF 61.65 CHF 69.88 59
Dividend Discount
Gordon GGM CHF 14.97 CHF 29.82 CHF 45.16 70
DDM Multi-Stage CHF 14.97 CHF 25.77 CHF 31.48 61
Multiples
P/E Multiple CHF 64.88 CHF 86.51 CHF 108.14 63
P/S Multiple CHF 31.53 CHF 42.04 CHF 52.55 58
P/B Multiple CHF 15.81 CHF 21.09 CHF 26.36 55
EV/EBIT CHF 92.98 CHF 126.75 CHF 160.52 53
EV/EBITDA CHF 83.52 CHF 114.14 CHF 144.76 54
EV/Revenue CHF 21.10 CHF 33.71 CHF 46.32 43
Asset-Based
NCAV (Graham) CHF 3.51 CHF 4.71 CHF 7.03 50
Growth DCF
Growth DCF CHF 49.89 CHF 83.61 CHF 134.47 80
Rev-Margin DCF CHF 30.41 CHF 50.85 CHF 75.58 74
Economic Profit
Residual Income CHF 35.69 CHF 57.24 CHF 1,078 76
ROIC Compounder CHF 56.32 CHF 71.74 CHF 88.77 72
Growth Earnings
Growth-Adj P/E CHF 46.66 CHF 66.65 CHF 86.65 68

Widest divergence: DCF Models (CHF 84.57) versus Asset-Based (CHF 4.71). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) CHF 1.1B
Revenue growth (YoY) +8.9%
Net margin 26.2%
Return on equity 53.0%
Free cash flow CHF 349M FY2025
P/E ratio 20.7
More key figures
Operating margin 22.4%
EPS (TTM) CHF 3.38
EPS growth (YoY) +45.0%
Net debt CHF 605M FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 84/100

Of which business quality 79 · Market factors (momentum, volatility) 49

Profitability 76
Margins and returns on capital today
Quality Growth 77
Are margins and returns improving?
Cashflow 87
Earnings quality: real cash, not paper profit
Fin. Strength 54
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 66
Calm price path (market factor)
Momentum 43
Price trend over the last 3–12 months (market factor)
52W Momentum 40
Distance to the 52-week high (market factor)
Net Issuance 96
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.

About the company

Temenos AG develops, markets, and sells integrated banking software systems to banking and other financial services institutions in North America, Europe, the Middle East and Africa, Latin America, and the Asia-Pacific. It operates through two segments, The Product and Service.

Full company description

Temenos AG develops, markets, and sells integrated banking software systems to banking and other financial services institutions in North America, Europe, the Middle East and Africa, Latin America, and the Asia-Pacific. It operates through two segments, The Product and Service. The Product segment is primarily engaged in marketing, licensing and maintaining the Group's software solutions, including software development fees for requested functionality, as well as providing hosting and subscription arrangements. The Services segment represents various implementation tasks, such as consulting and training. It also offers retail and business; corporate and commercial; and wealth management solutions. The company was formerly known as Temenos Group AG and changed its name to Temenos AG in May 2018. Temenos AG was founded in 1993 and is headquartered in Lancy, Switzerland.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Temenos AG reported revenue of CHF 1.1B in FY2025 versus CHF 967M in FY2021, a compound +4.3%/yr. Reported net income was CHF 294M in FY2025, compounding +14.1%/yr from FY2021.

Growth Quality 79/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
CHF 1.1B
Latest YoY
+9.4%
Avg. growth/yr (3Y)
+6.4%
Avg. growth/yr (5Y)
+5.2%
Avg. growth/yr (23Y)
+10.6%
Revenue +4.3%/yr
FY21 CHF 967M
FY22 CHF 950M
FY23 CHF 1.0B
FY24 CHF 1.0B
FY25 CHF 1.1B
Net income +14.1%/yr
FY21 CHF 173M
FY22 CHF 114M
FY23 CHF 135M
FY24 CHF 177M
FY25 CHF 294M

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Cite: Fair Value Calculator (2026). "Temenos AG Fair Value". https://www.fairvalue-calculator.com/stock/TEMN

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Software - Application · 709 stocks

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.

Quality Score 84 · Top 25%
Fair Value upside +22% · Top 25%
Return on equity (TTM) 53% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 26% · Top 25%
Operating margin (TTM) 22% · Top 25%
Revenue growth 9% · Above median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 1.61× · Higher than 75% of peers

Valuation Multiples vs Software - Application median · lower = cheaper

P/E (TTM) 20.7× · Cheaper than median
P/B 12.31× · Pricier than 75% of peers
P/S (TTM) 5.29× · Pricier than 75% of peers
P/FCF 16.8× · Pricier than median
EV/EBITDA 22.3× · Pricier than median
PEG 3.44× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 63 · sector 0
FUTURE 45 · sector 38
PAST 100 · sector 13
HEALTH 19 · sector 98
DIVIDEND 0 · sector 28

Insider activity: 40/100

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Software - Application stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
SAP SE SAPS C$12.69 C$16.26 +28%
Shopify Inc SHOP C$173.23 C$20.54 -88%
Uber Technologies, Inc UBER $72.67 $51.11 -30%
Salesforce, Inc CRM $170.77 $182.10 +7%
ServiceNow, Inc NOW $107.71 $33.12 -69%
Cadence Design Systems, Inc CDNS $384.17 $80.41 -79%
Snowflake Inc SNOW $271.87 $34.04 -87%
Adobe Inc ADBE $230.61 $379.48 +65%
Automatic Data Processing, Inc ADP $241.92 $177.51 -27%
Intuit Inc INTU $291.09 $258.69 -11%

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Frequently asked questions

Is Temenos AG (TEMN) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of CHF 86.51 versus a price of CHF 70.85, about +22% (undervalued).
What is the fair value of TEMN?
Our model-based fair value for Temenos AG is CHF 86.51 (as of Jul 16, 2026), built from audited fundamentals. The current price is CHF 70.85.
What is the quality score of TEMN?
Temenos AG has a Quality Score of 84/100. 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 revenue of Temenos AG (TEMN)?
Temenos AG reported trailing-twelve-month revenue of about CHF 1.1B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of TEMN?
The net profit margin of Temenos AG is about 26.2%, meaning it keeps roughly 26.2% of revenue as net income. Based on the latest reported figures.

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.

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