One-glance verdict
Undervalued
$39.14 our estimate vs market $24.35
Wall Street consensus: $26.96 (-31.1% lower than our fair-value estimate)
38% below our estimate, below the bear case
Fundamentals snapshot
Dassault Systèmes SE
DASTY · PNK · Technology · Software - Application
Current price
$24.35
52-week range
$18.99 - $35.20
Market cap
$32.00B
Balance sheet
Healthy
33.13x Strong cushion
Net cash $2.65B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 0.4% last year.
- Reward Returns 15.1% on equity, ahead of 20% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Insider ownership is only 0.0% (peer median: 0.3%).
What this company does
Dassault Systèmes SE
Dassault Systèmes makes complex 3D software that helps companies design and digitally test products like cars, airplanes, and medical equipment before they are ever built. The company's money primarily comes from selling software licenses and subscriptions, creating a steady flow of recurring revenue (income that is expected to continue regularly) because customers in critical industries rely on these essential tools for years.
How the company got here
Dassault Systèmes started in 1981 as a spin-off from an airplane manufacturer, Dassault Aviation, to sell 3D design software. This software, called CATIA, was revolutionary for engineers in the aerospace and car industries because it allowed them to create and test complex designs on a computer instead of building expensive physical models. Over the years, the company expanded by acquiring other software companies and developing a broad suite of tools for all kinds of industries. A major turning point was the creation of the 3DEXPERIENCE platform in 2012, which connected all its different software into one collaborative online space. This platform allows everyone involved in a project, from designers to marketers, to work together on a single, shared virtual model.
What it actually does
Dassault Systèmes creates software that lets companies design, test, and manufacture products in a virtual 3D world before ever making them in real life. Think of it like a highly advanced video game for engineers and designers. For example, a car company can use the software to design a new car, simulate how it would perform in a crash test, and even plan out the entire factory process for building it, all on a computer. This helps businesses save time and money, create better products, and operate more efficiently. The company serves a huge range of industries, from aerospace and automotive to healthcare and consumer goods.
Industrial Innovation
This is the company's largest business area, making up more than half of its revenue. It provides the core 3D design and simulation software that the company was built on, including well-known brands like CATIA and SOLIDWORKS. Customers in manufacturing industries—like car makers, airplane manufacturers, and industrial equipment companies—pay for these tools to design everything from a single screw to an entire airplane. This segment helps companies create what are called 'virtual twins' (a detailed digital copy of a physical object) to invent, test, and perfect their products on a computer.
Life Sciences
This is a significant and growing part of the business that focuses on the healthcare and pharmaceutical industries. It offers specialized software, like MEDIDATA, that helps scientists and doctors discover new drugs, run clinical trials, and even create virtual models of human organs like the heart for testing. For example, a pharmaceutical company would pay to use this software to manage the massive amounts of data from a new drug study, helping them get life-saving treatments to patients faster. This segment aims to help the industry move toward 'precision medicine' (treatments tailored to individual patients).
Mainstream Innovation
This segment provides more accessible and broadly used 3D design software, with SOLIDWORKS being its most famous product. It serves a wide range of customers, from individual inventors and small design shops to large corporations that need straightforward but powerful design tools. Think of a company designing a new piece of furniture or a consumer electronic device; they would pay for a subscription to this software. This part of the business is crucial for bringing 3D design technology to a wider audience beyond just highly specialized industries.
What management is betting on now
The company's leadership is heavily focused on what it calls "3D UNIV+RSES" and leading the "Industrial AI transformation." This means they are integrating artificial intelligence (AI) into their virtual twin technology, allowing the software to not just simulate but also generate new designs and solutions on its own. They are also pushing for more business to be done on their cloud-based 3DEXPERIENCE platform, which makes it easier for customers to subscribe to their software and collaborate. The ultimate goal is to help create a 'generative economy,' where virtual models help businesses create more sustainable and innovative products in the real world.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $39.14 vs current price $24.35
Wall Street consensus is the average analyst price target: $26.96 (-31.1% lower than our fair-value estimate).
Our most-likely fair value is $39.14 a share — about 60.8% above today's price of $24.35, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $2.7B - more cash than debt. Interest coverage 33.1x.
Net debt
$-2.65B
Interest coverage
33.13x
Dassault Systèmes SE's profit covers its interest bill about 33.1 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
DASTY
BASELINE
Dassault Systèmes SE
Total debt $3.92B Interest coverage 33.13x This is the baseline the peer rows are being compared against.
Total debt $3.70B Interest coverage 25.27x -24% vs DASTY Carries about 1.3x less debt cushion than DASTY.
Total debt $1.61B Interest coverage 12.96x -61% vs DASTY Carries about 2.6x less debt cushion than DASTY.
Total debt $2.65B Interest coverage 14.16x -57% vs DASTY Carries about 2.3x less debt cushion than DASTY.
Total debt $1.46B Interest coverage 8.22x -75% vs DASTY Carries about 4.0x less debt cushion than DASTY.
What you should know
The case for and against DASTY
3 Rewards
1 Risk
Rewards
-
Revenue grew 0.4% last year.
-
Returns 15.1% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Insider ownership is only 0.0% (peer median: 0.3%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
21.74x
Forward P/E
14.99x
P/B
2.98x
P/S
5.16x
EV/EBITDA
17.80x
PEG ratio
3.13x
Profitability
How much profit each dollar creates
Gross margin
84.2%
Operating margin
23.4%
Net margin
21.3%
ROE
15.1%
ROA
6.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.36x
Current ratio
1.99x
Quick ratio
1.91x
Total debt
$3.92B
Total cash
$6.58B
Growth
How the business has been compounding
Revenue TTM
$7.21B
Revenue 5Y CAGR
3.2%
EPS TTM
1.12
EPS 5Y CAGR
8.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.89B
Free CF TTM
$1.71B
FCF margin
23.7%
Dividend
Shareholder payout
Yield
1.3%
Payout ratio
27.7%
Last ex-div date
2026-05-26