Editing EQS Group (section)

=== Peer context ===
As the internal investment is continuing to affect profitability, the most reliable of the traditional multiples is EV/Revenue (although Edison Investment Research also shows EV/EBITDA and P/E). There is a wide range of multiples for the financial software peer group. For FY1, EQS is trading at 6.6x sales versus the average for the peer group of 8.5x.

{| class="wikitable"
|+Exhibit 6: Peer comparison<ref>Source: Refinitiv. Note: Prices as at 16 June 2022.</ref>
!
!Price (reporting currency)
!Market
!YTD
! colspan="3" |EV/ Sales (x)
! colspan="3" |EV/EBITDA (x)
| colspan="3" |PE (x)
|-
|
|
|cap (m)
|%
|FY0
|FY1
|FY2
|FY0
|FY1
|FY2
|FY0
|FY1
|FY2
|-
|Euromoney (£)
|1086
|1,169
|17
|3.7
|3.1
|2.8
|15.4
|12.7
|10.7
|23.7
|19.5
|16.5
|-
|Thomson Reuters (U$)
|126.44
|61,592
|<nowiki>-16</nowiki>
|8.1
|7.7
|7.3
|26
|22.2
|18.4
|50.3
|40.3
|29.7
|-
|Envestnet (U$)
|54.14
|2,988
|<nowiki>-32</nowiki>
|2.9
|2.6
|2.3
|13.3
|13.7
|11.1
|22.4
|25
|19.7
|-
|Swissquote Group (€)
|101.5
|1,544
|<nowiki>-49</nowiki>
|8.8
|9.1
|8.1
|
|17.3
|14.9
|9.3
|9.1
|8.1
|-
|Globaldata (£)
|1085
|1,264
|<nowiki>-24</nowiki>
|7.9
|6.7
|6.3
|23.2
|19.6
|17.2
|32
|27.5
|23.9
|-
|MSCI (U$)
|397.39
|32,237
|<nowiki>-35</nowiki>
|17.5
|15.5
|14
|29.85
|27.2
|24.4
|39.9
|34.9
|30.4
|-
|S&P Global (U$)
|321.3
|109,223
|<nowiki>-32</nowiki>
|14.4
|9.7
|8.9
|25.7
|19.4
|17.3
|23.5
|25.7
|21.5
|-
|Marketaxess Holding (U$)
|270.04
|10,192
|<nowiki>-34</nowiki>
|14.1
|13
|11.6
|22.3
|21.1
|21.9
|39.9
|38.2
|33.6
|-
|Average
|
|
|<nowiki>-26</nowiki>
|9.7
|8.4
|7.7
|22.3
|19.2
|17.0
|30.1
|27.5
|22.9
|-
|Median
|
|
|<nowiki>-32</nowiki>
|8.5
|8.4
|7.7
|23.2
|19.5
|17.3
|27.9
|26.6
|22.7
|-
|EQS (€)
|29.3
|294.0
|<nowiki>-32</nowiki>
|8.5
|6.4
|4.6
|67.6
|184.6
|42.9
|N/A
|N/A
|42.8
|-
|Premium/(discount)
|
|
|
|1%
|<nowiki>-24%</nowiki>
|<nowiki>-40%</nowiki>
|204%
|864%
|152%
|N/A
|N/A
|87%
|-
|Application software peers
|
|
|<nowiki>-27</nowiki>
|4.2
|3.6
|3.3
|19.7
|17.9
|14.0
|29.2
|27.5
|26.2
|-
|Premium/(discount)
|
|
|
|103%
|78%
|39%
|243%
|931%
|206%
|N/A
|N/A
|N/A
|}
Edison Investment Research has also looked at a broader global set of quoted application software peers, which are, in general, rated at roughly 50% lower across EV/Revenue, EV/EBITDA and P/E. EQS shares trade at valuation between the two groups (financial software peers and application software peers) on FY1 and FY2 EV/Revenue. As would be expected by the suppression of short-term profitability to boost the longer-term potential, EQS trades at a considerable premium on EV/EBITDA (and for FY2 P/E) across both peer sets.

For illustrative purposes, closing the discount on FY2 EV/Revenue would imply a share price of €51. Obviously, the relatively small scale and early stage of business development warrant a considerable discount. A 25% discount, for example, would imply a share price of €38.35, which is still 31% above the level at which the shares are currently trading.