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Reply S.p.A. (REY) Fair Value & Analysis

Technology · IT · Market cap €4.3B · ISIN IT0005282865

What is Reply S.p.A. really worth?

RS Reply S.p.A. REY · MI
Price€122.00
Fair Value€193.37
Upside+58.5%
Quality70/100

A solid business, trading 37% below our fair value of €193.37.

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Strengths

Healthy Growth (revenue 5y +14.1 %/yr)
Solidly profitable · 10.2% net margin
Low debt · generates free cash flow
Ranks above peers (9/14)

Risks

!Moderate moat 62/100
!Weak on dividend: 22 out of 100

For context

·1.11% dividend yield
Evidence: High Range €114.57 – €241.72

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 22 days ago

Fair value updated Aug 13, 2026, revised from €135.57 to €193.37 (+42.6%) since Jul 21, 2026. Share price +3.8% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The rarer combination: high quality (70/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • A fairly wide model range (€114.57 to €241.72) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

€175.98 €76.08 Fair Value €193.37 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range €76.08 – €175.98 · fair‑value band €114.57 – €241.72 · the €122.00 price screens below the €193.37 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Reply S.p.A. (REY) currently trades at €122.00, while our model-based Fair Value estimate is €193.37, implying the stock looks roughly 36.9% undervalued today. The Quality Score stands at 70/100 (solid quality), in the Technology sector. Bull case: the DCF Models group reads highest at a median of €210.87 per share, and 17 of the 26 models we run sit above the €122.00 price. Bear case: the Asset-Based group reads lowest at €27.44, and 9 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Reply S.p.A. generated revenue of €2.5B at a net margin of 10.6%. Revenue grew 6.2% year over year. It earns a return on equity of 19.0%. The balance sheet holds a net cash position of €172M. Fundamentals as of Aug 13, 2026

Our scenario range runs from €114.57 (bear case) to €241.72 (bull case); at €122.00, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 16% below its 52-week high and 61% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at 69% fair-value upside, at 59%, REY screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly €3.87 per share, which is 2.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF €114.16 €201.39 €355.16 77
Growth DCF €112.18 €188.45 €315.96 76
Owner Earnings €119.20 €210.87 €372.46 74
All 26 models by family
DCF Models
FCF DCF €114.16 €201.39 €355.16 77
Owner Earnings €119.20 €210.87 €372.46 74
5Y Revenue Exit €113.35 €196.08 €311.56 71
5Y EBITDA Exit €159.90 €295.78 €472.67 73
5Y P/E Exit €138.58 €250.10 €382.34 69
10Y Revenue Exit €109.34 €188.21 €315.70 65
10Y EBITDA Exit €143.37 €261.21 €452.53 66
10Y P/E Exit €129.32 €227.77 €375.81 62
Earnings-Based
Graham-Dodd €46.96 €247.15 €342.08 63
Lynch FV €67.92 €97.03 €126.14 61
PEG = 1.0 €67.92 €97.03 €126.14 57
EPV €92.06 €104.25 €114.77 74
Dividend Discount
Gordon GGM €10.87 €21.66 €32.80 67
DDM Multi-Stage €10.87 €18.72 €22.86 67
Multiples
P/E Multiple €145.03 €193.37 €241.72 63
P/S Multiple €88.05 €117.40 €146.76 58
P/B Multiple €88.05 €117.40 €146.76 55
EV/EBIT €208.92 €273.61 €338.30 66
EV/EBITDA €193.61 €253.20 €312.78 67
EV/Revenue €112.96 €155.01 €197.06 54
Asset-Based
NCAV (Graham) €20.48 €27.44 €40.95 54
Growth DCF
Growth DCF €112.18 €188.45 €315.96 76
Rev-Margin DCF €113.35 €193.13 €300.53 71
Economic Profit
Residual Income €44.02 €59.30 €198.54 64
ROIC Compounder €102.68 €130.23 €164.04 72
Growth Earnings
Growth-Adj P/E €118.26 €168.95 €219.63 67

Widest divergence: DCF Models (€210.87) versus Dividend Discount (€18.72). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 17.5
P/S ratio 1.79 P/E × margin
EPS (TTM) €6.98 price ÷ EPS = P/E 17.5
Dividend yield 1.1% payout 19.3%
Net margin 10.2% FY2025
Return on equity 18.1% TTM
More key figures
Profitability
Return on assets (EBIT) 12.5% avg 5y
Operating margin 15.7% TTM
Growth
Revenue (TTM) €2.5B TTM
Revenue growth (YoY) +8.0% 3y avg +8.6%
EPS growth (YoY) −13.6%
Balance sheet & cash flow
Free cash flow €280M FY2025
Net cash €172M FY2023

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 70/100

Of which business quality 70 · Market factors (momentum, volatility) 61

Profitability 67
Margins and returns on capital today
Quality Growth 50
Are margins and returns improving?
Cashflow 61
Earnings quality: real cash, not paper profit
Fin. Strength 89
Balance sheet, leverage, solvency risk
Investment 62
Disciplined investing over empire-building
Low Volatility 61
Calm price path (market factor)
Momentum 61
Price trend over the last 3–12 months (market factor)
52W Momentum 64
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Reply S.p.A. provides consulting, system integration, and digital services based on communication channels and digital media in Italy and internationally.

Full company description

Reply S.p.A. provides consulting, system integration, and digital services based on communication channels and digital media in Italy and internationally. It offers Axulus Reply, an engineering platform for the industrial sector with generative AI functionalities; Brick Reply, a digital as a service platform that enables the transformation of industrial operations; Discovery Reply, a platform that centralizes and manages the life cycle of digital content, such as images, videos, audio, 3D models, and documents; and Lea Reply, platform for supply chain execution processes. The company also provides TamTamy Reply, a platform for the creation, management, and orchestration of agentic AI solutions in enterprise environments; TamTamy Reply, an enterprise social network platform for corporate communication and collaboration; Ticuro Reply, a modular platform that enables processes to support prevention and continuity of care remotely for digital healthcare; and X-RAIS Reply, an artificial intelligence solution for radiological diagnosis processes through deep learning. The company serves automotive and manufacturing, energy and utilities, financial services, logistics, retail and consumer products, and telco and media industries. The company has a strategic collaboration with European Institute Of Oncology for the development and training of domain-specific Large Language Models for oncology. Reply S.p.A. was founded in 1995 and is headquartered in Turin, Italy.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Reply S.p.A. reported revenue of €2.4B in FY2025 versus €1.5B in FY2021, a compound +13.0%/yr. Reported net income was €251M in FY2025, compounding +13.6%/yr from FY2021.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
€2.4B
Latest YoY
+6.7%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.6%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.1%
Avg. revenue growth/yr (25Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+18.8%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+16.4% (15.3 + 1.1)
Revenue +13.0%/yr
FY21 €1.5B
FY22 €1.9B
FY23 €2.1B
FY24 €2.3B
FY25 €2.4B
Net income +13.6%/yr
FY21 €151M
FY22 €191M
FY23 €187M
FY24 €211M
FY25 €251M
Character of growth · EPS growth decomposed (2012-2023) +18.9 % p.a.
Revenue per share +13.9 %

of which total revenue +14.1 % · buybacks/dilution −0.1 %

EBIT margin +2.0 %
Tax rate +2.2 %
Residual (interest, one-offs) +0.1 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Reply S.p.A. Fair Value". https://www.fairvalue-calculator.com/stock/REY

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Information Technology Services · 486 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 70 · Top 25%
Fair Value upside +59% · Top 25%
Return on equity (TTM) 18% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 10% · Top 25%
Operating margin (TTM) 16% · Top 25%
Revenue growth 8% · Above median
Dividend yield (TTM) 1.1% · Below median
Debt / equity 0.02× · Lower than median

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/E (TTM) 17.5× · Cheaper than median
P/B 3.36× · Pricier than median
P/S (TTM) 1.97× · Pricier than median
P/FCF 17.8× · Pricier than 75% of peers
EV/EBITDA 10.3× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 34
FUTURE40 · sector 31
PAST72 · sector 33
HEALTH99 · sector 97
DIVIDEND22 · sector 36

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.59 $175.76 −25%
Accenture plc ACN $189.61 $334.27 +76%
Tata Consultancy Services Limited TCS ₹2,302 ₹3,473 +51%
Infosys Limited INFY ₹1,156 ₹1,958 +69%
HCL Technologies Limited HCLTECH ₹1,282 ₹1,722 +34%
Fiserv, Inc FI C$5.13 C$8.07 +57%
Wipro Limited WIT $1.83 $3.51 +92%
Fidelity National Information Services, Inc FIS $41.34 $19.28 −53%
Cognizant Technology Solutions Corporation CTSH $64.04 $132.01 +106%
Capgemini SE CAP €109.45 €222.79 +104%

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Frequently asked questions

Is Reply S.p.A. (REY) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of €193.37 versus a price of €122.00, about +59% upside (undervalued).
What is the fair value of REY?
Our model-based fair value for Reply S.p.A. is €193.37 (as of Aug 13, 2026), built from audited fundamentals. The current price: €122.00.
What is the quality score of REY?
Reply S.p.A. has a Quality Score of 70/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Reply S.p.A. (REY)?
Reply S.p.A. reported trailing-twelve-month revenue of about €2.5B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of REY?
The net profit margin of Reply S.p.A. is about 10.6%, meaning it keeps roughly 10.6% of revenue as net income. Based on the latest reported figures.
Does Reply S.p.A. pay a dividend?
Reply S.p.A. currently shows a dividend yield of about 1.11% relative to its recent price (as of Aug 13, 2026).
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