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Temenos Group AG (TEMN) Fair Value & Analysis

Technology · CH · Market cap CHF 4.8B · ISIN CH0012453913

What is Temenos Group AG really worth?

TG Temenos Group AG TEMN · SW
PriceCHF 72.75
Fair ValueCHF 90.28
Upside+24.1%
Quality84/100

A strong business, trading 19% below our fair value of CHF 90.28.

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Strengths

Healthy Growth (revenue 5y +5.2 %/yr)
Highly profitable · 26.2% net margin
Ranks above peers (9/15)
Wide moat 78/100

Risks

!High debt · generates free cash flow
!Weak on balance sheet: 19 out of 100
Evidence: High Range CHF 51.48 – CHF 123.10

Fair value as of: Sep 2, 2026

From 26 valuation models · updated 2 days ago

Fair value updated Sep 2, 2026, revised from CHF 89.43 to CHF 90.28 (+1.0%) since Aug 27, 2026. Share price +5.4% over the past month.

What runs behind every stock

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

What matters now

  • A fairly wide model range (CHF 51.48 to CHF 123.10) leaves room in how you read the outcome.
  • The price sits in the lower half of our model range, the side with the larger margin of safety.
  • The data supports the verdict: every model runs on fully documented inputs.

Price vs Fair Value (5 years)

CHF 139.74 CHF 46.24 Fair Value CHF 90.28 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 2, 2026.

How to read this chart

60‑month range CHF 46.24 – CHF 139.74 · fair‑value band CHF 51.48 – CHF 123.10 · the CHF 72.75 price screens below the CHF 90.28 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 2, 2026.

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Analysis

Temenos Group AG (TEMN) currently trades at CHF 72.75, while our model-based Fair Value estimate is CHF 90.28, implying the stock looks roughly 19.4% undervalued today. The Quality Score stands at 84/100 (high quality), in the Technology sector. Bull case: the DCF Models group reads highest at a median of CHF 102.43 per share, and 17 of the 26 models we run sit above the CHF 72.75 price. Bear case: the Dividend Discount group reads lowest at CHF 25.77, and 9 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Temenos Group AG generated revenue of CHF 1.1B at a net margin of 26.2%. Revenue grew 8.9% year over year. It earns a return on equity of 53.0%. Net debt stands at CHF 605M. Fundamentals as of Sep 2, 2026

Our scenario range runs from CHF 51.48 (bear case) to CHF 123.10 (bull case); at CHF 72.75, 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 15% below its 52-week high and 34% above its 52-week low, currently above its 200-day average. For context, the median of 10 Technology peers we cover trades at −38% fair-value upside, at 24%, TEMN screens cheaper 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 CHF 2.23 per share, which is 2.5 % 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 CHF 49.56 CHF 84.57 CHF 138.30 78
Growth DCF CHF 49.89 CHF 83.61 CHF 134.47 77
Owner Earnings CHF 61.15 CHF 103.16 CHF 167.65 75
All 26 models by family
DCF Models
FCF DCF CHF 49.56 CHF 84.57 CHF 138.30 78
Owner Earnings CHF 61.15 CHF 103.16 CHF 167.65 75
5Y Revenue Exit CHF 48.78 CHF 86.04 CHF 134.57 71
5Y EBITDA Exit CHF 86.14 CHF 158.35 CHF 245.38 73
5Y P/E Exit CHF 64.96 CHF 117.37 CHF 174.16 69
10Y Revenue Exit CHF 46.68 CHF 80.77 CHF 128.62 65
10Y EBITDA Exit CHF 72.08 CHF 130.77 CHF 213.98 66
10Y P/E Exit CHF 58.70 CHF 102.43 CHF 159.13 62
Earnings-Based
Graham-Dodd CHF 29.41 CHF 107.17 CHF 144.61 64
Lynch FV CHF 25.49 CHF 36.42 CHF 47.35 61
PEG = 1.0 CHF 25.49 CHF 36.42 CHF 47.35 57
EPV CHF 52.10 CHF 61.65 CHF 69.88 74
Dividend Discount
Gordon GGM CHF 14.97 CHF 29.82 CHF 45.16 67
DDM Multi-Stage CHF 14.97 CHF 25.77 CHF 31.48 67
Multiples
P/E Multiple CHF 90.84 CHF 121.11 CHF 151.39 63
P/S Multiple CHF 55.15 CHF 73.53 CHF 91.92 58
P/B Multiple CHF 31.63 CHF 42.17 CHF 52.72 55
EV/EBIT CHF 126.75 CHF 171.77 CHF 216.80 66
EV/EBITDA CHF 118.85 CHF 161.24 CHF 203.64 67
EV/Revenue CHF 50.52 CHF 75.75 CHF 100.97 53
Asset-Based
NCAV (Graham) CHF 3.51 CHF 4.71 CHF 7.03 54
Growth DCF
Growth DCF CHF 49.89 CHF 83.61 CHF 134.47 77
Rev-Margin DCF CHF 48.78 CHF 85.71 CHF 130.03 71
Economic Profit
Residual Income CHF 35.69 CHF 57.24 CHF 1,078 64
ROIC Compounder CHF 56.32 CHF 71.74 CHF 88.77 72
Growth Earnings
Growth-Adj P/E CHF 57.98 CHF 82.83 CHF 107.67 67

Widest divergence: DCF Models (CHF 102.43) versus Asset-Based (CHF 4.71). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 21.5
P/S ratio 5.54 P/E × margin
EPS (TTM) CHF 3.38 price ÷ EPS = P/E 21.5
Dividend yield 2.5% payout 53.5%
Net margin 25.7% FY2025
Return on equity 53.0% TTM
More key figures
Profitability
Return on assets (EBIT) 11.9% avg 5y
Operating margin 22.4% TTM
Growth
Revenue (TTM) CHF 1.1B TTM
Revenue growth (YoY) +8.9% 3y avg +6.4%
EPS growth (YoY) +45.0%
Balance sheet & cash flow
Free cash flow CHF 349M FY2025
Net debt CHF 605M FY2025 · ≈ 1.7 yrs of FCF

Figures from reported company fundamentals · as of Sep 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 84/100

Of which business quality 79 · Market factors (momentum, volatility) 52

Profitability 76
Margins and returns on capital today
Quality Growth 77
Are margins and returns improving?
Cashflow 87
Earnings quality: real cash, not paper profit
Fin. Strength 54
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 66
Calm price path (market factor)
Momentum 45
Price trend over the last 3–12 months (market factor)
52W Momentum 47
Distance to the 52-week high (market factor)
Net Issuance 96
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

Temenos AG develops, markets, and sells integrated banking software systems to banking and other financial services institutions in North America, Europe, the Middle East and Africa, Latin America, and the Asia-Pacific. It operates through two segments, The Product and Service.

Full company description

Temenos AG develops, markets, and sells integrated banking software systems to banking and other financial services institutions in North America, Europe, the Middle East and Africa, Latin America, and the Asia-Pacific. It operates through two segments, The Product and Service. The Product segment is primarily engaged in marketing, licensing and maintaining the Group's software solutions, including software development fees for requested functionality, as well as providing hosting and subscription arrangements. The Services segment represents various implementation tasks, such as consulting and training. It also offers retail and business; corporate and commercial; and wealth management solutions. The company was formerly known as Temenos Group AG and changed its name to Temenos AG in May 2018. Temenos AG was founded in 1993 and is headquartered in Lancy, Switzerland.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Temenos Group AG reported revenue of $1.1B in FY2025 versus $967M in FY2021, a compound +4.3%/yr. Reported net income was $294M in FY2025, compounding +14.1%/yr from FY2021.

Growth Quality 79/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
CHF 1.1B
Latest YoY
+9.4%
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.
+6.4%
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.
+5.2%
Avg. revenue growth/yr (23Y) 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.
+10.6%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+14.3% (11.8 + 2.5)
Revenue +4.3%/yr
FY21 $967M
FY22 $950M
FY23 $1.0B
FY24 $1.0B
FY25 $1.1B
Net income +14.1%/yr
FY21 $173M
FY22 $114M
FY23 $135M
FY24 $177M
FY25 $294M
Character of growth · EPS growth decomposed (2014-2025) +9.0 % p.a.
Revenue per share +7.4 %

of which total revenue +7.6 % · buybacks/dilution −0.2 %

EBIT margin +3.2 %
Tax rate −0.5 %
Residual (interest, one-offs) −1.2 %

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). "Temenos Group AG Fair Value". https://www.fairvalue-calculator.com/stock/TEMN

Recent news

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

Peer Group

Software - Application · 691 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 84 · Top 25%
Fair Value upside +24% · Top 25%
Return on equity (TTM) 53% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 26% · Top 25%
Operating margin (TTM) 22% · Top 25%
Revenue growth 9% · Above median
Dividend yield (TTM) 2.5% · Above median
Debt / equity 1.61× · Higher than 75% of peers

Valuation Multiples vs Software - Application median · lower = cheaper

P/E (TTM) 21.5× · Cheaper than median
P/B 12.29× · Pricier than 75% of peers
P/S (TTM) 5.28× · Pricier than 75% of peers
P/FCF 16.8× · Pricier than median
EV/EBITDA 22.3× · Pricier than median
PEG 3.44× · Pricier than 75% of peers

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
VALUE65 · sector 0
FUTURE45 · sector 37
PAST100 · sector 12
HEALTH19 · sector 98
DIVIDEND50 · sector 28

Insider activity: 40/100

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 Software - Application stocks, each showing price versus our Fair Value estimate (as of Sep 2, 2026).

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Shopify Inc SHOP C$209.78 C$28.76 −86%
Uber Technologies, Inc UBER $78.82 $43.66 −45%
Salesforce, Inc CRM $252.05 $249.28 −1%
ServiceNow, Inc NOW $138.43 $43.73 −68%
Cadence Design Systems, Inc CDNS $340.39 $112.57 −67%
Snowflake Inc SNOW $329.11 $42.27 −87%
Adobe Inc ADBE $289.15 $454.04 +57%
Automatic Data Processing, Inc ADP $284.68 $177.51 −38%
Intuit Inc INTU $348.00 $363.46 +4%

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Frequently asked questions

Is Temenos Group AG (TEMN) overvalued or undervalued?
As of Sep 2, 2026, our model estimates a fair value of CHF 90.28 versus a price of CHF 72.75, about +24% upside (undervalued).
What is the fair value of TEMN?
Our model-based fair value for Temenos Group AG is CHF 90.28 (as of Sep 2, 2026), built from audited fundamentals. The current price: CHF 72.75.
What is the quality score of TEMN?
Temenos Group AG has a Quality Score of 84/100. 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 Temenos Group AG (TEMN)?
Temenos Group AG reported trailing-twelve-month revenue of about CHF 1.1B (latest available figure, as of Sep 2, 2026).
What is the net profit margin of TEMN?
The net profit margin of Temenos Group AG is about 26.2%, meaning it keeps roughly 26.2% of revenue as net income. Based on the latest reported figures.
Does Temenos Group AG pay a dividend?
Temenos Group AG currently shows a dividend yield of about 2.49% relative to its recent price (as of Sep 2, 2026).
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