--- title: "Nemetschek (XTRA:NEM) Valuation Check After Solid Q1 2026 Earnings Draw Investor Attention" type: "News" locale: "en" url: "https://longbridge.com/en/news/286163828.md" description: "Nemetschek (XTRA:NEM) reported solid Q1 2026 earnings with sales of €313.09 million and net income of €60.37 million. Despite these results, the stock has seen a 50.26% decline over the past year. Analysts suggest the stock may be undervalued, with a fair value estimate of €96 compared to its last close at €60.40. The company's transition to SaaS models is enhancing revenue visibility, but risks remain regarding the pace of this transition and M&A integration. Investors are advised to weigh the positives against potential risks before making decisions." datetime: "2026-05-12T22:01:15.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286163828.md) - [en](https://longbridge.com/en/news/286163828.md) - [zh-HK](https://longbridge.com/zh-HK/news/286163828.md) --- # Nemetschek (XTRA:NEM) Valuation Check After Solid Q1 2026 Earnings Draw Investor Attention Nemetschek (XTRA:NEM) is back in focus after reporting first quarter 2026 results, with sales of €313.09 million and revenue of €320.12 million, alongside net income of €60.37 million. See our latest analysis for Nemetschek. Despite the firm Q1 results and its appearance at the UBS Best of Europe Virtual 1-on-1 Conference on 12 May 2026, Nemetschek’s share price has been under pressure, with the 90 day share price return down 10.85% and the 1 year total shareholder return down 50.26%. This suggests that momentum has been fading recently. If you are reassessing your exposure to software and digital infrastructure stocks after these moves, it could be a good moment to broaden your search through 101 top founder-led companies With solid quarterly figures, a share price that has fallen 50.26% over 1 year, and the stock trading below some valuation estimates, investors now face a key question: is this a buying opportunity, or is future growth already priced in? ## Most Popular Narrative: 37.2% Undervalued Nemetschek’s most followed valuation narrative puts fair value at about €96, compared with the last close at €60.40. This frames the recent share price slide in a very different light. > _Strong momentum in transitioning customers from perpetual licenses to SaaS/subscription models (with recurring revenue now at record highs and subscription/SaaS revenue growing at ~75%) enhances revenue visibility, increases customer retention, and provides operating leverage that supports both revenue and margin growth._ _Read the complete narrative._ Curious what sits behind that valuation gap? The narrative leans heavily on recurring software revenue, thicker margins, and a richer earnings profile a few years out. **Result: Fair Value of €96.22 (UNDERVALUED)** Have a read of the narrative in full and understand what's behind the forecasts. However, that valuation gap depends heavily on smooth SaaS migration and successful M&A integration. Slower uptake or weaker synergies could quickly challenge this bullish case. Find out about the key risks to this Nemetschek narrative. ## Another View: Paying Up for Quality? While the SWS DCF model points to Nemetschek trading well below an estimated future cash flow value of €148.18, the current P/E of 30x looks demanding next to peers at 16.3x and an estimated fair ratio of 25.8x. Is the quality premium justified, or does it add extra valuation risk? See what the numbers say about this price — find out in our valuation breakdown. XTRA:NEM P/E Ratio as at May 2026 ## Next Steps Given this mix of caution and optimism, it makes sense to look through the numbers yourself and decide how comfortable you are with the current setup. To see what is driving the optimism on Nemetschek and weigh those positives against the risks, take a close look at its 3 key rewards ## Looking for more investment ideas? If Nemetschek no longer feels like the only place to focus, now is the time to widen your watchlist and compare it with fresh opportunities. - Spot opportunities with solid fundamentals before others by scanning the screener containing 543 high quality undiscovered gems. - Lock in income-focused ideas by reviewing companies in the 476 dividend fortresses. - Prioritise resilience and lower volatility by checking stocks featured in the 304 resilient stocks with low risk scores. _This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._ ### Valuation is complex, but we're here to simplify it. Discover if Nemetschek might be undervalued or overvalued with our detailed analysis, featuring **fair value estimates, potential risks, dividends, insider trades, and its financial condition.** Access Free Analysis ### Related Stocks - [NEM.DE](https://longbridge.com/en/quote/NEM.DE.md) - [UBS.US](https://longbridge.com/en/quote/UBS.US.md) ## Related News & Research - [Jefferies Reaffirms Their Buy Rating on Nemetschek (0FDT)](https://longbridge.com/en/news/285407973.md) - [Jefferies Reaffirms Their Buy Rating on Nemetschek (0FDT)](https://longbridge.com/en/news/284306558.md) - [California advances game access bill, proposes SaaS tax expansion](https://longbridge.com/en/news/286739941.md) - [11:02 ETJennifer Cortez Joins Lytx as Chief Marketing Officer](https://longbridge.com/en/news/287088169.md) - [California pushes SaaS tax proposal and game preservation bill](https://longbridge.com/en/news/286848239.md)