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The Descartes Systems GroupSTU:DC2 -2.12%88 Peter Lynch Fair Value is €28.32 as of Jul. 19, 2026, which is 100% below its 10-year median of 3.46. GuruFocus rates STU:DC2 with a GF Score™ of 88/100 and a GF Value™ of €102.45 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 678 Software companies, The Descartes Systems Group ranks worse than 76.4% on this metric.
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Here, as of today, The Descartes Systems Group's PEG is 1. The Descartes Systems Group's 5-Year TTM EBITDA Growth Rate is 16.63.
The Descartes Systems Group's EPS without NRI for the trailing twelve months (TTM) ended in Apr. 2026 was €1.70. Therefore, the Peter Lynch Fair Value for today is €28.32.
The historical rank and industry rank for The Descartes Systems Group's Peter Lynch Fair Value or its related term are showing as below:
STU:DC2'
s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 1.92 Med: 3.46 Max: 6.69
Current: 2.04
During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of The Descartes Systems Group was 6.69. The lowest was 1.92. And the median was 3.46.
STU:DC2's Price-to-Peter-Lynch-Fair-Value is ranked worse than 76.4% of 678
companies
in the Software industry
Industry Median: 1.2
vs STU:DC2: 2.04
Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.
The Descartes Systems Group (STU:DC2) Peter Lynch Fair Value Explanation
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.
Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.
Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA per share over the past 5 years, which is 16.63 instead of 15 in this case.
The Descartes Systems Group's Price to Peter Lynch Fair Value Ratio for today is calculated as
Price to Peter Lynch Fair Value
=
Share Price
/
Peter Lynch Fair Value
=
64.70
/
28.32
=
2.28
* 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 Peter Lynch Fair Value Related Terms
The Descartes Systems Group Peter Lynch Fair Value 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.
The Descartes Systems Group Peter Lynch Fair Value Chart
STU:DC2 vs UBER, SHOP, CRM: Peter Lynch Fair Value Comparison
For the Software - Application subindustry, The Descartes Systems Group's Price-to-Peter-Lynch-Fair-Value, along with its competitors' market caps and Price-to-Peter-Lynch-Fair-Value 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 Price-to-Peter-Lynch-Fair-Value vs Software Industry
For the Software industry and Technology sector, The Descartes Systems Group's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:
* The bar in red indicates where The Descartes Systems Group's Price-to-Peter-Lynch-Fair-Value falls into.
The Descartes Systems Group's EPS without NRI 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 €1.70.
* 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.
** Please be aware that the 5-Year TTM EBITDA Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data adds up the quarterly data reported by the company within the most recent 12 months. For companies that report semi-annually, annually, or do not have enough quarterly data, GuruFocus uses the annual data as the TTM data.
If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.
If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.
What does a Peter Lynch Fair Value of €28.32 mean?
The Descartes Systems Group (STU:DC2) has a Peter Lynch Fair Value of €28.32 as of Jul. 19, 2026. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on The Descartes Systems Group and its competitors. This is 718% above median its historical median of 3.46. Over the past decade, The Descartes Systems Group's Peter Lynch Fair Value has ranged from 1.92 to 6.69. According to the industry distribution chart, The Descartes Systems Group ranks #518 out of 678 companies in the Software industry, placing it in the top 76.4%.
Is The Descartes Systems Group's Peter Lynch Fair Value too high?
The Descartes Systems Group's current Peter Lynch Fair Value of €28.32 is 718% above median its 10-year median of 3.46. Over the past 10 years, this metric has ranged from a low of 1.92 to a high of 6.69. Based on the distribution chart, The Descartes Systems Group ranks #518 out of 678 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, The Descartes Systems Group has a GF Score™ of 88/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Descartes Systems Group's Peter Lynch Fair Value compare to UBER and SHOP?
According to the Software industry distribution chart, The Descartes Systems Group ranks #518 out of 678 companies for Peter Lynch Fair Value. This places The Descartes Systems Group in the lower half of its industry. The industry median Peter Lynch Fair Value is 1.20. Historically, The Descartes Systems Group's own Peter Lynch Fair Value has ranged from 1.92 to 6.69 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Peter Lynch Fair Value for a Software company?
The median Peter Lynch Fair Value among Software companies is 1.20, based on 678 companies in the industry. Companies in the top quartile (top 25%) have a Peter Lynch Fair Value significantly above this median, while those in the bottom quartile fall well below. However, Peter Lynch Fair Value should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Peter Lynch Fair Value mean?
A high Peter Lynch Fair Value can signal that a stock is expensive relative to its fundamentals. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on The Descartes Systems Group and its competitors. For the Software industry, the median Peter Lynch Fair Value is 1.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Descartes Systems Group's current Peter Lynch Fair Value is €28.32, which is 718% above median its own 10-year median of 3.46. 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 (STU:DC2) is currently considered Significantly Undervalued. The stock's GF Value™ is €102.45, compared to a current price of €64.70 — trading 36.8% below its estimated fair value. The current Peter Lynch Fair Value is €28.32, which is 718% above median its 10-year median of 3.46. The Descartes Systems Group's overall GF Score™ is 88/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Peter Lynch Fair Value calculated?
Peter Lynch Fair Value is calculated from a company's financial statements. For The Descartes Systems Group (STU:DC2), the current Peter Lynch Fair Value is €28.32 as of Jul. 19, 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 €64.70 is trading 36.8% below its estimated GF Value™ of €102.45.
GuruFocus considers The Descartes Systems Group to be Significantly Undervalued.
Key valuation signals for STU:DC2:
Peter Lynch Fair Value: €28.32 (718% above median its 10-year median of 3.46)
GF Value™: €102.45 vs. price of €64.70 (36.8% below fair value)
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.
88GF Score
Get the complete analysis for STU:DC2
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