SGE.L · Intrinsic value
Is The Sage Group plc (SGE.L) overvalued or undervalued?
The Sage Group plc (SGE.L) trades at the delayed market price of £11.22 a share. That price already implies revenue growth of 2.1% a year for 5 years. TickerWorth's fair value is £12.91 a share (priced within our range of £5.32 – £16.07). We do not call it over- or undervalued from inside our range.
Model by Miraaj Patel · generated from market data · Updated Oct 19, 2026 · How these pages are made
Is SGE.L fairly valued?
- Fair value
- £12.91
- Market price
- £11.22
- Upside to fair value
- +15.0%
- Verdict
- Priced within our range of £5.32 – £16.07
Reverse DCF: Today's price implies revenue growth of 2.1% a year for 5 years; our model assumes 6.8% a year on average over the same horizon.
What is SGE.L's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Technology companies in UK
Its strongest point: a profitable, high-quality business. Its weakest: balance sheet looks stretched.
- Value · 50 of 100
Cheaper than 50% of Technology companies worldwide
- Price vs worth · 62 of 100
- Quality · 81 of 100
More profitable than 81% of Technology companies worldwide
- Financial health · 9 of 100
Financially stronger than 9% of Technology companies worldwide
- Growth · 31 of 100
Growing faster than 31% of Technology companies worldwide
- Momentum · 79 of 100
Outperformed 79% of Technology companies worldwide over the past year
Confidence: High confidence · Scored
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SGE.L DCF valuation, input by input
TickerWorth's fair value for The Sage Group plc (SGE.L) is £12.91 a share, against the delayed market price of £11.22 (priced within our range of £5.32 – £16.07). We do not call it over- or undervalued from inside our range. It is a model estimate, and every input behind it is sourced below. This is an educational model, not a price target or a recommendation.
Read the full reasoning
The valuation discounts The Sage Group plc's projected free cash flows at a weighted-average cost of capital (WACC) of 6.9%, with a long-run terminal growth rate of 2.5%. About 82% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 2.1% annual revenue growth for SGE.L. Our base case instead compounds to about 6.8% a year over the same forecast, so the market is pricing in slower growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, SGE.L's modeled DCF value ranges from about £7.87 to £30.58 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what The Sage Group plc would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of SGE.L's intrinsic value. Figures update as new filings and prices come in.
Every input behind SGE.L's DCF
| Input | Value |
|---|---|
| Base-year revenueLive feed — totalRevenue (TTM) | £2,634,000,000 |
| Base EBIT marginComputed — trailing operatingMargins, held roughly flat | 22.3% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 10% → 8% → 7% → 5% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.3% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.40 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesLive feed — sharesOutstanding | 901M |
| Market priceLast known price · as of 2026-10-19 13:55 UTC | £11.22 |
Change SGE.L's assumptions
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What does The Sage Group plc do?
What does it do?
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. It operates in the Software - Application industry (Technology sector), headquartered in United Kingdom. The company employs roughly 11,094 people.
How does it make money?
The business turns 2.6B in annual revenue into profit. Out of every $100 of sales, about $22 is left as operating profit (operating margin of 22.3%), after a 93% gross margin on the products/services it sells. After all costs, taxes and interest, 14.6% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks stretched: carries heavy debt (9.2× equity), may struggle to cover its short-term bills (0.6× current ratio), and is currently profitable.
SGE.L insider trading
Insider filings are available for US-listed companies only.
Common questions
What is SGE.L's intrinsic value?
TickerWorth's blended fair value for The Sage Group plc (SGE.L) is £12.91 per share, versus a market price of £11.22 (priced within our range of £5.32 – £16.07).
Is SGE.L overvalued or undervalued?
Priced within our range of £5.32 – £16.07 at £11.22. We don't call SGE.L overvalued or undervalued from a range. This is an educational estimate, not advice.
What discount rate is used for SGE.L?
A WACC of 6.9% and a terminal growth rate of 2.5%.
Is The Sage Group stock undervalued?
TickerWorth's fair value for The Sage Group plc (SGE.L) is £12.91 against a market price of £11.22. Our read: Priced within our range of £5.32 – £16.07. This is a model estimate, not investment advice.
The Sage Group (SGE.L) DCF valuation and fair value
Our fair value for The Sage Group plc (SGE.L) is £12.91, built on a 6.9% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into The Sage Group stock?
Today's price implies revenue growth of 2.1% a year for 5 years; our model assumes 6.8% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of £11.22. A model estimate, not investment advice.
The Sage Group (SGE.L) insider trading
We have no recent SEC Form 4 insider filings on file for The Sage Group plc (SGE.L). Form 4 covers US-listed companies only.
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.