Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
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Data
Price vs fair value
5.4% above
-5.1% to fair value
ACCE score
53
out of 100
P/E
32.8x
forward 17.6x
1-year return
+18.8%
Dividend yield
1.88%
Temenos AG in four questions
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Overview
ACCE thesis
Temenos sells core banking software, the transaction and account ledgers that sit underneath retail and commercial banks, with its Temenos Transact and Temenos Infinity platforms as the main products. The moat is switching cost: once a bank has migrated its ledger onto a core system, it rarely moves again, which is why gross margin holds at 74.3% and operating margin reaches 32.2%. The near-term question is whether revenue, which is shrinking 1.4%, stabilises as cloud migrations and new bank wins come through, since the stock trades at 17.5x forward earnings against a trailing 32.6x, implying the market expects earnings to recover faster than sales. A 42.8% return on equity shows the business converts capital efficiently even while top-line growth is flat, so the case for a closer look rests on whether the earnings rebound is credible. Without index membership the name has a thin sponsor base, which may keep the price more volatile than the fundamentals alone would suggest.
⚠ Investor warnings · 1 flagAI-assisted·How I use AI
high
Earnings collapsing while revenue slips
Earnings fell 56.8% year on year while revenue dropped 1.4%, so the margin squeeze is happening faster than the top line is moving. Debt is 1.69 times equity, which leaves less room to absorb a further slide.
AI research notes
AI-assisted·How I use AIWritten Oct 22, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Temenos earned a 42.8% return on equity, a sign the business turns shareholder capital into profit very efficiently.
Analysts' mean price target of CHF 81.14 sits 10.0% above the current share price, implying room for upside by their estimates.
Free cash flow over the last twelve months reached $349M, and the share count fell 3.7%, adding value for remaining shareholders.
Why it could disappoint
Revenue fell 1.4% year over year, a sharp break from its five-year average growth of 5.2% per year.
At a trailing P/E of 32.1x the shares look expensive against the forward P/E of 16.1x, which relies on earnings recovery.
Debt to equity of 1.69 leaves the balance sheet heavily geared, which magnifies damage if revenue keeps shrinking.
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Next results
Oct 27, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where TEMN.SW's valuation models land
Price
CHF 74.75
Model fair value
CHF 70.93
Model range
CHF 42.17 to CHF 103
Fair value CHF 70.93
Price CHF 74.75
The price sits inside the model range.
Model
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Dividend discount
EV/EBITDA comparison
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