Are Jamf Shares Poised for Growth After a 20% Rally in Early 2025?

• Ever wondered if Jamf Holding stock is a hidden gem, or if its true value is already priced in? Let’s take a closer look at what might make it worth your attention right now.
• Jamf’s share price has been on the move lately, climbing 18.8% in the past week and 20.8% over the last month. However, it is still down 8.8% year-to-date and 23.8% in the past year.
• Recent headlines have focused on sector-wide optimism for software stocks, especially those facilitating Apple device management, as schools and businesses continue digital transitions. These trends have brought Jamf some renewed investor interest after long-term underperformance.
• On our valuation checks, Jamf scores a 4 out of 6, meaning it appears undervalued on most measures. Let’s break down those valuation methods and then explore an approach that tells a more complete story at the end of the article.

Find out why Jamf Holding's -23.8% return over the last year is lagging behind its peers.

Approach 1: Jamf Holding Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model is a common way to estimate what a business is worth by forecasting its future cash flows and then discounting those flows back to their present value. Essentially, it projects what the company could generate in cash over time and asks how much all that future cash is worth today.

For Jamf Holding, the latest reported Free Cash Flow (FCF) stands at approximately $66.9 Million. Analysts have forecasted continued growth in FCF, with projections showing Jamf could generate roughly $265 Million annually in 10 years (by 2035). It is important to note that while five years of these projections come from analyst estimates, the rest are extrapolated based on expected trends in business growth.

Based on these projections, the DCF approach calculates a fair value for Jamf Holding of $21.42 per share. This is about 40.0% higher than the current share price, meaning the model suggests the stock is notably undervalued by the market right now.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Jamf Holding is undervalued by 40.0%. Track this in your watchlist or portfolio, or discover 843 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Jamf Holding.

Approach 2: Jamf Holding Price vs Sales

The Price-to-Sales (P/S) ratio is widely used for high-growth technology companies like Jamf Holding, especially when current profitability is limited or negative. This metric compares a company's market value to its total revenue, offering a snapshot of how much investors are willing to pay for every dollar of sales. It is particularly relevant here, as Jamf is focused on scaling revenue and may not yet be consistently profitable.

A company’s "normal" or "fair" P/S ratio generally reflects not only its sales growth expectations but also the risks and margins associated with those sales. Businesses with higher growth potential or stronger market positions can command higher multiples, while riskier or slower-growing companies see lower ones.

Jamf is currently trading at a P/S ratio of 2.57x. This is above the peer average of 2.36x, but well below the industry average of 5.33x. However, benchmarks like the industry average and peers do not always reflect company-specific factors that influence what the multiple should be.

This is where the Simply Wall St “Fair Ratio” comes in. For Jamf Holding, the Fair Ratio is calculated at 4.09x. Unlike simple peer or industry comparisons, the Fair Ratio incorporates Jamf’s unique earnings growth prospects, profit margins, market cap, industry positioning, and company-specific risks. This makes it a more tailored gauge of what investors might reasonably pay for Jamf’s sales today.

Comparing Jamf's actual P/S ratio of 2.57x to its Fair Ratio of 4.09x suggests that the stock is undervalued on this basis. The company is trading at a meaningful discount to what it should be, given its fundamentals and growth outlook.

Result: UNDERVALUED

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1412 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Jamf Holding Narrative

Earlier we mentioned there's an even better way to understand valuation, so let's introduce you to Narratives, a smarter and more engaging way to invest that goes beyond numbers and ratios. Put simply, a Narrative connects the company’s unique story to your assumptions about future growth, profit margins, and risks, producing a personalized financial forecast and a fair value tailored to your perspective. Narratives make investing intuitive and accessible. On Simply Wall St’s Community page, you can use this tool to anchor your view of Jamf Holding, update your outlook at any time, and see your real-time fair value compared against the market price.

Because Narratives are dynamic, they automatically reflect new developments such as earnings results or acquisition news, so your view is always up to date. This means whether you believe Jamf’s cross-platform expansion and global partnerships will drive outperformance (like investors who set their fair value at $23.00 per share), or you see risks from Apple’s ecosystem dominance and sector headwinds and align with a more conservative $10.00 target, you can quickly visualize the gap between your fair value and the current price, then decide when to buy, hold, or sell based on your own story-driven conviction.

Do you think there's more to the story for Jamf Holding? Head over to our Community to see what others are saying!

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com