The Platform Group (TPG) - German consolidator of market platforms

[Intueor]

No thread has been found for The Platform Group yet, so let’s open one to get forum tracking for this company.

The Platform Group (hereinafter TPG) is a German technology company that provides retailers with multi-sector e-commerce platforms and comprehensive solutions for the digitalization of sales, logistics, and marketing. The company’s software enables merchants to quickly access over 50 sales channels with one click, manages data and customer service, offers expert knowledge in digital marketing (SEO, SEA, social media, email, affiliate), and is responsible for continuous visibility monitoring.

A large part of the platforms’ retailers are smaller companies who significantly benefit from e-commerce visibility, but they have to pay a commission on sales.

TPG continuously acquires new sales platform companies, and its ownership is very well diversified across different industries, as its portfolio consists of companies from 28 different sectors.

Currently, TPG has a total of over 30 B2C and B2B platforms on which over 15,000 partners sell their products – and the number is growing rapidly. According to their material, TPG’s growth is based on the following ‘growth circle’.

The figures of particular interest to investors are as follows. Revenue grew at a CAGR of 56% between 2020-2024. The company guides for 2025 revenue in the range of €715-735 million, when the realized revenue for 2024 was €525 million, resulting in YoY growth of 36-40%.
Revenue (AI-generated from Tradingview’s revenue data):

Net income (AI-generated from Tradingview’s net income data):

Guidance (TPG H1/25 presentation https://corporate.the-platform-group.com/media/document/fdb62c9b-586b-4550-8ad5-e8c41e21a9f0/assets/250822_TPG_H1_2025_Reporting_Presentation.pdf?disposition=inline):

Slight growth can be seen in net margins. The company has already exceeded its guided EBITDA% target.

It is noteworthy that the company aims to keep its leverage at 1.5-2.3 x LTM EBITDA. Currently, leverage is 2.05 x LTM EBITDA, with total debt of €100 million. The company has €14.4 million in cash.

A lot of money is spent on acquisitions, and this is also reflected in the number of shares. Dilution has occurred over time.

However, considering the growth, the stock’s valuation is not dizzying. According to the latest review, the company’s key figures are as follows:
Marketcap = 211 M€
Enterprise value = 312 M€
P/E (LTM) = 3.20
P/S (LTM) = 0.31
EV/S (2025E) = 0.43
EV/EBITDA (2025E) = 5.60

The stock price has moved as follows since 2023 (1W). Judging by its movement, it also offers trading opportunities.

Platform Group AG Financial Statements – XETR:TPG – TradingView

There are certainly fellow investors here who follow or have followed the company - please share your thoughts on the company!

[sampzukka]

I’ve done a bit of digging in recent days, but my limited German hinders more extensive research. Considering its growth and business, it certainly seems ridiculously cheap, but apparently there are also many negative views on the company in Germany. Ownership is also very concentrated (CEO owns nearly 70%), which in itself can be a good thing if the guy has good intentions. I’d gladly hear the views of those who are more familiar with it and speak German!

[Koyhanmiehen_salkku]

I just noticed this thread. I have this in my portfolio and last Friday I bought a little more, very moderately, but now I regret not adding more. Because I just calculated the valuations (P/E and EV/EBITDA) according to the forecasts and the end result was similar figures to those above. It feels ridiculously cheap and I immediately wonder if there’s something I don’t understand? Apparently there is, because I never find these and am always behind the curve.

[halli]

Platform group teki kolme yritysostoa lääkealalle ja samalla nosti ensi vuoden ohjeistusta

https://corporate.the-platform-group.com/news/the-platform-group-targets-eur-1-billion-in-revenue-for-2026-completes-three-acquisitions-in/9b0146ac-fb57-427d-96b4-a1ae58df6838/?disposition=inline

Raised Mid-Term Guidance for 2026

Against the backdrop of the recent acquisitions and organic growth, TPG’s Board of Directors is raising its mid-term guidance for financial year 2026. Gross merchandise volume (GMV) is expected to increase to EUR 1.7 billion (previous guidance: EUR 1.6 billion), and net revenue to at least EUR 1.0 billion (previous guidance: >EUR 860 million). Driven by strong earnings momentum, pharma acquisitions, and expansion in “Optics & Hearing,” adjusted EBITDA is now projected to reach EUR 70 million to EUR 80 million (previous guidance: >EUR 64 million). The number of partners is expected to exceed 18,000 (unchanged). In line with this increase, product listings on TPG platforms are projected to rise by more than 20%. The already raised 2025 forecast is confirmed.

[TP1980]

Yesterday, the interim report was published, and performance was as strong as expected. The market reaction so far has been exactly what I anticipated for this stock: first a small bounce upwards, and then it starts sliding down again. This company just doesn’t seem to interest anyone, even though growth is strong and valuation is ridiculously low. Below, I’ve included an AI-generated summary of the report.

Q3/9M 2025 Interim Report

The company’s report showed significant growth and improved profitability:

• Revenue and Gross Merchandise Volume (GMV): Revenue grew by 43.2% year-on-year to EUR 531.6 million during the 9M 2025 period. Gross Merchandise Volume (GMV) increased by 48.8% to EUR 902.1 million.

• Organic Growth: Organic revenue growth was strong at 26.3%, highlighting the effectiveness of the company’s software-based platform model.

• Profitability: Adjusted EBITDA grew by an impressive 86.2% to EUR 45.8 million. Consolidated net profit increased by 63.5% to EUR 41.7 million.

• Customer and Partner Numbers: The number of active customers grew by 48.9% to 6.7 million, and the number of partners to 15,931, supporting growth.

• Acquisitions: The company has made several acquisitions, particularly in the pharmaceutical and optics sectors, to strengthen its position and expand segments.

The company reaffirmed its full-year 2025 guidance based on strong performance (GMV at least EUR 1.3 billion, revenue EUR 715–735 million, adjusted EBITDA EUR 54–58 million).

Current Stock Valuation

The stock’s valuation is currently interesting:

• P/E Ratio: The company’s trailing P/E ratio (based on the last 12 months’ earnings) is approximately 3.8x (based on earnings per share of EUR 2.14). This is a very low figure, especially compared to the industry average (the average for comparable companies has been around 32.3x).

• Forward P/E: The forward P/E ratio is even lower, approximately 3.18x, suggesting that analysts expect earnings to grow further.

• Analyst Target Prices: The average 12-month target price for the stock from analysts is approximately EUR 19, indicating significant upside potential compared to the current price of around EUR 8.1.

• Market Sentiment and Risks: Although the key figures and analysts’ views suggest undervaluation, the market may be cautious (e.g., due to the general economic situation or risks related to acquisitions). The stock price has moved within a 52-week range of EUR 7.12–12.90.

In summary: The Q3 report was very positive, showing strong growth and profitability. The current valuation (especially the low P/E ratio and high analyst target prices) suggests that the market has not fully priced in the company’s growth potential, and the stock may be undervalued. However, investors should conduct their own analysis and consider potential market risks.

[Speku-Lantti]

I’ve been wondering the exact same thing – in my opinion, the stock seems grossly undervalued by all metrics. And I thought the Q3 reception was lukewarm compared to previous earnings report stock reactions and the content of the report itself. At the same time, I wonder about the stock’s slide so low always after earnings reports/positive reports. Is it just that only during earnings releases is the volume strong enough for some larger owner to get rid of their shares?

The current strong growth is profitable, and indebtedness is moderate. Is that 25% free float the reason why this doesn’t interest investors, or does someone else find something that explains this? I understand that funds and institutions might not be able to buy this, but one would think that even local retail investors in Germany would be interested. And as already stated, well-known analysis firms have given quite consistent views on the company and the target price of the stock.

EDIT: And to add, this is still a growth company (as said, a profitable one), with P/S 2024 of 0.31 and 2025e of 0.24 (source: Nordnet)

Below are a couple more images from the Q3 report:

[Tuokki]

Also wondered the same here. I’ve thought, “Did I find a gem that no one else has noticed?” Got a similar feeling with this as with Intellegon when I first found it.

If this were a US company, the P/E would trade in slightly different spheres.

[Speku-Lantti]

Exactly. The earnings report probably mentioned that one goal is to increase the company’s visibility.

I’d gladly see more discussion about the company here to broaden my own perspective on it.

Edit: It will be interesting to see how long the stock can still trade at these multiples and what might be a potential catalyst for a price increase. Based on current information, I don’t see much downside here. At these multiples, I’d be tempted to add more to my portfolio, but I’m still worried if there’s something I’m just not noticing.

[Speku-Lantti]

I bounced ideas with AI, and here is a DCF calculation generated by ChatGPT (to be taken with a grain of salt and for indicative purposes).

Basic assumptions in the DCF model:
• 2025 EBITDA: 56 MEUR
• FCF margin: 65% → FCF 2025 = 36.4 MEUR
• FCF growth: 18% / year (2025–2028)
• Discount rate (WACC): 10%
• Terminal growth: 4%
• Market value = 160 MEUR

Results:
• DCF value ≈ 941 MEUR
• Potential upside compared to current share price ≈ +488%

And with different scenarios:

• Conservative target: 25–30 €
  (based on 15–18% growth scenarios and a margin of 6–7%).

• Base scenario / realistic target: 35–40 €
  (corresponds to 18% growth and a margin of 7.5%, which is close to current guidance and profitability trend).

• Optimistic scenario: 50 € +
  (requires 20%+ growth to continue and EBITDA margin to rise >9%)

At the same time, ChatGPT’s summary of the peer analysis:

TPG appears to be priced very conservatively compared to peers: P/E ratio ~4x when the sector could be ~20x or even more, EV/EBITDA ~5x when the peer group is ~8-10x or even ~18x.

[Speku-Lantti]

After the Q3 report, all analyst firms issued a clear buy recommendation with previous target prices, based on which there would be plenty of upside.

[Koyhanmiehen_salkku]

It’s not really going up, on the contrary, it’s on a downward trend. I have bought more and this is now the third largest investment in my portfolio with about a 16% share.

[Verneri_Pulkkinen]

@Speku-Lantti

After the Q3 report, all analysis houses gave a clear buy recommendation with previous target prices, based on which there would be plenty of upside.

In Germany, analysis is ’

[TP1980]

Good to know about those target prices.. Have you researched this company at all? It would be nice to hear a professional’s assessment of this, as it feels like such a good and cheap company to me.

[Peesailija]

Did Platform pull an Intellego? I couldn’t find any news, but the row in Nordnet is greyed out and I can’t trade. The shares are still in the equity savings account, of course

[tuuliviiri]

Probably related to this: https://corporate.the-platform-group.com/news/the-platform-group-converts-to-registered-shares/991c5888-59ee-4120-9c21-8cd2ec14e6f2/?disposition=inline . My own limited understanding suggests that the graying out is likely temporary?

[Speku-Lantti]

I was just about to comment the same, but you beat me to it. I had similar thoughts about this.

[iKaani]

I looked into the company, but mainly for these 2 reasons I decided not to invest:

-The strategy seems to be maximum growth without a common thread (e.g., constantly wanting to enter new sectors), “empire building” instead of increasing shareholder value. Furthermore, continuous acquisitions are a major risk.

-Platform Group is reluctant to release figures on organic growth/adjusted earnings. It is difficult to value the company because of this; seemingly cheap multiples with “unadjusted” figures don’t tell the whole story.

I would also like to see more evidence of PG’s supposed economies of scale for a miscellaneous group of niche market platforms, and the small free float doesn’t entice me to buy either.

Disclaimer: This is based on a brief investigation last night. An interesting, exceptional company story, however (from a 19th-century shoe store to the king of niche market platforms).

[Koyhanmiehen_salkku]

Still greyed out and the price chart is kaput. It was supposed to be over after Jan 8th, but no. Any more info on this?

[tuuliviiri]

I think that stock can be found on Nordnet with the ticker TPG0, so trading seems to be active. I would guess it’s Nordnet’s slowness in reassigning those shares to the new ticker.

[Koyhanmiehen_salkku]

At least there was no trading today and the name has changed; it is now Fashionette AG O.N.