Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
The Descartes Systems GroupDSGX -1.49%93 EV-to-OCF is 22.78 as of Aug. 31, 2026, which is 33% below its 10-year median of 34.06. GuruFocus rates DSGX with a GF Score™ of 93/100 and a GF Value™ of $121.66 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,876 Software companies, The Descartes Systems Group ranks worse than 79.76% on this metric.
The historical rank and industry rank for The Descartes Systems Group's EV-to-OCF or its related term are showing as below:
DSGX'
s EV-to-OCF Range Over the Past 10 Years
Min: 19.22 Med: 34.06 Max: 51.7
Current: 22.78
During the past 13 years, the highest EV-to-OCF of The Descartes Systems Group was 51.70. The lowest was 19.22. And the median was 34.06.
DSGX's EV-to-OCF is ranked worse than 79.76% of 2876
companies
in the Software industry
Industry Median: 6.91
vs DSGX: 22.78
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
The Descartes Systems Group (NAS:DSGX) EV-to-OCF Explanation
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
The Descartes Systems Group's PE Ratio (TTM) for today is calculated as:
The Descartes Systems Group's share price for today is $80.64.
The Descartes Systems Group's Earnings per Share (Diluted) 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 $2.000.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
The Descartes Systems Group EV-to-OCF Related Terms
The Descartes Systems Group EV-to-OCF 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-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Software Industry
For the Software industry and Technology sector, The Descartes Systems Group's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where The Descartes Systems Group's EV-to-OCF falls into.
The Descartes Systems Group's current Enterprise Value is $6,554.9 Mil.
The Descartes Systems Group's Cash Flow from Operations 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 $287.8 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 (DSGX) has a EV-to-OCF of 22.78 as of Aug. 31, 2026. This is 33% below median its historical median of 34.06. Over the past decade, The Descartes Systems Group's EV-to-OCF has ranged from 19.22 to 51.70. According to the industry distribution chart, The Descartes Systems Group ranks #2294 out of 2876 companies in the Software industry, placing it in the top 79.8%.
Is The Descartes Systems Group's EV-to-OCF too high?
The Descartes Systems Group's current EV-to-OCF of 22.78 is 33% below median its 10-year median of 34.06. Over the past 10 years, this metric has ranged from a low of 19.22 to a high of 51.70. The Software industry median EV-to-OCF is 6.91. The Descartes Systems Group's value of 22.78 is 229.7% above this industry median. Based on the distribution chart, The Descartes Systems Group ranks #2294 out of 2876 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, The Descartes Systems Group has a GF Score™ of 93/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Descartes Systems Group's EV-to-OCF compare to CRM and SHOP?
According to the Software industry distribution chart, The Descartes Systems Group ranks #2294 out of 2876 companies for EV-to-OCF. This places The Descartes Systems Group in the lower half of its industry. The industry median EV-to-OCF is 6.91. The Descartes Systems Group's value of 22.78 is 229.7% above this benchmark. Historically, The Descartes Systems Group's own EV-to-OCF has ranged from 19.22 to 51.70 over the past decade. While the company's 10-year median is 34.06 vs. the industry median of 6.91, 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-OCF for a Software company?
The median EV-to-OCF among Software companies is 6.91, based on 2,876 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF 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-OCF of 22.78 is 229.7% 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median EV-to-OCF is 6.91 — 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-OCF is 22.78, which is 33% below median its own 10-year median of 34.06. 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 (DSGX) is currently considered Significantly Undervalued. The stock's GF Value™ is $121.66, compared to a current price of $80.64 — trading 33.7% below its estimated fair value. The current EV-to-OCF is 22.78, which is 33% below median its 10-year median of 34.06 and 229.7% above the Software industry median of 6.91. The Descartes Systems Group's overall GF Score™ is 93/100 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-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For The Descartes Systems Group (DSGX), the current EV-to-OCF is 22.78 as of Aug. 31, 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 (DSGX) Overvalued in 2026?
Based on GuruFocus' analysis, The Descartes Systems Group stock appears to be undervalued.
The current stock price of $80.64 is trading 33.7% below its estimated GF Value™ of $121.66.
GuruFocus considers The Descartes Systems Group to be Significantly Undervalued.
Key valuation signals for DSGX:
EV-to-OCF: 22.78 (33% below median its 10-year median of 34.06)
GF Value™: $121.66 vs. price of $80.64 (33.7% below fair value)
Industry Position: 229.7% above the Software median (#2294 of 2876)
No single metric tells the full story. See the DSGX 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.
93GF Score
Get the complete analysis for DSGX
EV-to-OCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
DSGX has been successfully added to your 
