The Descartes Systems GroupTSX:DSG -0.12%85 EV-to-FCF is 21.41 as of Jul. 04, 2026, which is 40% below its 10-year median of 35.46. GuruFocus rates TSX:DSG with a GF Score™ of 85/100 and a GF Value™ of C$163.86 (Significantly Undervalued). Among 1,589 Software companies, The Descartes Systems Group ranks worse than 66.21% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, The Descartes Systems Group's Enterprise Value is C$8,317 Mil.
The Descartes Systems Group's Free Cash Flow for the trailing twelve months (TTM) ended in Apr. 2026 was C$388 Mil. Therefore, The Descartes Systems Group's EV-to-FCF for today is 21.41.
The historical rank and industry rank for The Descartes Systems Group's EV-to-FCF or its related term are showing as below:
TSX:DSG'
s EV-to-FCF Range Over the Past 10 Years
Min: 19.66 Med: 35.46 Max: 53.07
Current: 21.41
During the past 13 years, the highest EV-to-FCF of The Descartes Systems Group was 53.07. The lowest was 19.66. And the median was 35.46.
TSX:DSG's EV-to-FCF is ranked worse than 66.21% of 1589
companies
in the Software industry
Industry Median: 14.3
vs TSX:DSG: 21.41
EV-to-FCF 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 (TSX:DSG) EV-to-FCF Explanation
EV-to-FCF 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 C$103.17.
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 C$2.760.
* 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. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
The Descartes Systems Group EV-to-FCF Related Terms
The Descartes Systems Group EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Software Industry
For the Software industry and Technology sector, The Descartes Systems Group's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where The Descartes Systems Group's EV-to-FCF falls into.
The Descartes Systems Group's current Enterprise Value is C$8,317 Mil.
The Descartes Systems Group's Free Cash Flow 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 C$388 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 (TSX:DSG) has a EV-to-FCF of 21.41 as of Jul. 04, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on The Descartes Systems Group and its competitors. This is 40% below median its historical median of 35.46. Over the past decade, The Descartes Systems Group's EV-to-FCF has ranged from 19.66 to 53.07. According to the industry distribution chart, The Descartes Systems Group ranks #1052 out of 1589 companies in the Software industry, placing it in the top 66.2%.
Is The Descartes Systems Group's EV-to-FCF too high?
The Descartes Systems Group's current EV-to-FCF of 21.41 is 40% below median its 10-year median of 35.46. Over the past 10 years, this metric has ranged from a low of 19.66 to a high of 53.07. The Software industry median EV-to-FCF is 14.30. The Descartes Systems Group's value of 21.41 is 49.7% above this industry median. Based on the distribution chart, The Descartes Systems Group ranks #1052 out of 1589 companies in the Software industry, which is below the industry midpoint. Overall, The Descartes Systems Group has a GF Score™ of 85/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Descartes Systems Group's EV-to-FCF compare to UBER and SHOP?
According to the Software industry distribution chart, The Descartes Systems Group ranks #1052 out of 1589 companies for EV-to-FCF. This places The Descartes Systems Group in the lower half of its industry. The industry median EV-to-FCF is 14.30. The Descartes Systems Group's value of 21.41 is 49.7% above this benchmark. Historically, The Descartes Systems Group's own EV-to-FCF has ranged from 19.66 to 53.07 over the past decade. While the company's 10-year median is 35.46 vs. the industry median of 14.30, 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-FCF for a Software company?
The median EV-to-FCF among Software companies is 14.30, based on 1,589 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF 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-FCF of 21.41 is 49.7% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on The Descartes Systems Group and its competitors. For the Software industry, the median EV-to-FCF is 14.30 — 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-FCF is 21.41, which is 40% below median its own 10-year median of 35.46. 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 (TSX:DSG) is currently considered Significantly Undervalued. The stock's GF Value™ is C$163.86, compared to a current price of C$103.17 — trading 37% below its estimated fair value. The current EV-to-FCF is 21.41, which is 40% below median its 10-year median of 35.46 and 49.7% above the Software industry median of 14.30. The Descartes Systems Group's overall GF Score™ is 85/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For The Descartes Systems Group (TSX:DSG), the current EV-to-FCF is 21.41 as of Jul. 04, 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 (TSX:DSG) Overvalued in 2026?
Based on GuruFocus' analysis, The Descartes Systems Group stock appears to be undervalued.
The current stock price of C$103.17 is trading 37% below its estimated GF Value™ of C$163.86.
GuruFocus considers The Descartes Systems Group to be Significantly Undervalued.
Key valuation signals for TSX:DSG:
EV-to-FCF: 21.41 (40% below median its 10-year median of 35.46)
GF Value™: C$163.86 vs. price of C$103.17 (37% below fair value)
Industry Position: 49.7% above the Software median (#1052 of 1589)
No single metric tells the full story. See the TSX:DSG 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.
85GF Score
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