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The Descartes Systems GroupSTU:DC2 +0.70%92 EV-to-EBIT is 26.16 as of Aug. 03, 2026, which is 52% below its 10-year median of 54.64. GuruFocus rates STU:DC2 with a GF Score™ of 92/100 and a GF Value™ of €102.94 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,772 Software companies, The Descartes Systems Group ranks worse than 70.43% on this metric.
The Descartes Systems Group (STU:DC2) EV-to-EBIT Explanation
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
The Descartes Systems Group's Enterprise Value for the quarter that ended in Apr. 2026 was €4,941.0 Mil.
The Descartes Systems Group's EBIT for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €201.4 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The Descartes Systems Group EV-to-EBIT Related Terms
The Descartes Systems Group EV-to-EBIT Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, The Descartes Systems Group's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Descartes Systems Group EV-to-EBIT vs Software Industry
For the Software industry and Technology sector, The Descartes Systems Group's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where The Descartes Systems Group's EV-to-EBIT falls into.
The Descartes Systems Group's current Enterprise Value is €5,267.2 Mil.
The Descartes Systems Group's EBIT for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €201.4 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The Descartes Systems Group (STU:DC2) has a EV-to-EBIT of 26.16 as of Aug. 03, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on The Descartes Systems Group and its competitors. This is 52% below median its historical median of 54.64. Over the past decade, The Descartes Systems Group's EV-to-EBIT has ranged from 23.49 to 86.40. According to the industry distribution chart, The Descartes Systems Group ranks #1248 out of 1772 companies in the Software industry, placing it in the top 70.4%.
Is The Descartes Systems Group's EV-to-EBIT too high?
The Descartes Systems Group's current EV-to-EBIT of 26.16 is 52% below median its 10-year median of 54.64. Over the past 10 years, this metric has ranged from a low of 23.49 to a high of 86.40. The Software industry median EV-to-EBIT is 14.20. The Descartes Systems Group's value of 26.16 is 84.2% above this industry median. Based on the distribution chart, The Descartes Systems Group ranks #1248 out of 1772 companies in the Software industry, which is below the industry midpoint. Overall, The Descartes Systems Group has a GF Score™ of 92/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Descartes Systems Group's EV-to-EBIT compare to QH and SHOP?
According to the Software industry distribution chart, The Descartes Systems Group ranks #1248 out of 1772 companies for EV-to-EBIT. This places The Descartes Systems Group in the lower half of its industry. The industry median EV-to-EBIT is 14.20. The Descartes Systems Group's value of 26.16 is 84.2% above this benchmark. Historically, The Descartes Systems Group's own EV-to-EBIT has ranged from 23.49 to 86.40 over the past decade. While the company's 10-year median is 54.64 vs. the industry median of 14.20, The Descartes Systems Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Software company?
The median EV-to-EBIT among Software companies is 14.20, based on 1,772 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Descartes Systems Group's current EV-to-EBIT of 26.16 is 84.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on The Descartes Systems Group and its competitors. For the Software industry, the median EV-to-EBIT is 14.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Descartes Systems Group's current EV-to-EBIT is 26.16, which is 52% below median its own 10-year median of 54.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Descartes Systems Group stock overvalued right now?
Based on GuruFocus' analysis, The Descartes Systems Group (STU:DC2) is currently considered Significantly Undervalued. The stock's GF Value™ is €102.94, compared to a current price of €65.10 — trading 36.8% below its estimated fair value. The current EV-to-EBIT is 26.16, which is 52% below median its 10-year median of 54.64 and 84.2% above the Software industry median of 14.20. The Descartes Systems Group's overall GF Score™ is 92/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For The Descartes Systems Group (STU:DC2), the current EV-to-EBIT is 26.16 as of Aug. 03, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Descartes Systems Group (STU:DC2) Overvalued in 2026?
Based on GuruFocus' analysis, The Descartes Systems Group stock appears to be undervalued.
The current stock price of €65.10 is trading 36.8% below its estimated GF Value™ of €102.94.
GuruFocus considers The Descartes Systems Group to be Significantly Undervalued.
Key valuation signals for STU:DC2:
EV-to-EBIT: 26.16 (52% below median its 10-year median of 54.64)
GF Value™: €102.94 vs. price of €65.10 (36.8% below fair value)
Industry Position: 84.2% above the Software median (#1248 of 1772)
No single metric tells the full story. See the STU:DC2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. Its core product is the Global Logistics Network, which is best understood as transaction-driven. Descartes charges clients to send/receive messages, data, and documents on the GLN. Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.
92GF Score
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