Research HubSoftware & Cloud ServicesBENTLEY SYSTEMS INC (BSY)

Coverage:KVYO DDOG CRWD NOW SNOW PLTR ADBE CRM PANW NET SHOP MDB

SEC 10-K / 10-Q Equity ResearchSoftware & Cloud ServicesTicker: BSY

BENTLEY SYSTEMS INC (BSY) DCF Valuation & Fundamental Primer

BENTLEY SYSTEMS INC (BSY) currently trades at $38.07 with an enterprise value of $8.17B. Our proprietary institutional model rates BENTLEY SYSTEMS INC at 83/100 (Grade: A · High-Quality Compounder). The current market price prices in an implied 5-year revenue CAGR of 25.0% vs. historical growth of 11.0% (Aggressive Growth Expectations Priced In).

GDA Quality Score

A83/100

High-Quality Compounder

Share Price / DCF Base

$38.07 / $20.41

Enterprise Value

$14.07B

TTM Revenue

$1.35B (+11.0%)

Gross Margin

80.9%

Rule of 40 Score

42.1%

EV / TTM Revenue

10.4×

Structural Moat: Enterprise Software & Cloud Services Switching Costs & Recurring Workflow Integration

Key Growth Catalyst: AI workflow automation, multi-module expansion across enterprise cohorts, and operating margin leverage at Bentley Systems, Incorporated.

Institutional fundamental teardown of Bentley Systems, Incorporated (BSY) covering SEC 10-K/10-Q cash flow conversion, SBC dilution friction, and Reverse-DCF valuation hurdles.

Seed BSY in Interactive 3-Statement Model

Section 1 · Intrinsic Valuation Engine

BENTLEY SYSTEMS INC (BSY) 3-Scenario DCF Valuation Range

WACC: 10.0% · Terminal Growth: 2.5% · Diluted Shares: 333.8M

bear Case DCFSensitivity

$8.52

Implied Equity Value:$2.84B

vs Current ($38.07):-77.6%

base Case DCFPrimary Benchmark

$20.41

Implied Equity Value:$6.81B

vs Current ($38.07):-46.4%

bull Case DCFSensitivity

$34.93

Implied Equity Value:$11.66B

vs Current ($38.07):-8.3%

Interactive What-If DCF SandboxSim Rule of 40: 42.1%

Stress-test BSY's 5-year growth, target FCF margin, WACC, terminal methodology, and SBC/dilution friction in real time.

Seed Custom Drivers in /model

1-Click Regimes:

5Y Revenue CAGR11.0%

2%Hist: 11%50%

Target FCF Margin31.1%

5%Base: 31.1%45%

WACC Discount Rate10.0%

6.5%Base: 10%14.5%

Terminal Growth (g)2.5%

1.0%Implies 13.7× Y5 FCF4.0%

Accounting Lens:

Simulated Implied Price$20.42

Spread vs Market-46.4%

Simulated EV$8.18B

Effective FCF Margin31.1%

Simulated 5-Year Cash Flow Trajectory (Unlevered FCF vs. Discounted PV)Cumulative 5Y PV: $2.16B

Year 1$1.50B

FCF:$467.1M

PV:$424.6M

Year 2$1.67B

FCF:$518.5M

PV:$428.5M

Year 3$1.85B

FCF:$575.5M

PV:$432.4M

Year 4$2.05B

FCF:$638.8M

PV:$436.3M

Year 5$2.28B

FCF:$709.1M

PV:$440.3M

Enterprise Value Composition Bridge$8.18B

Split between 5-Year Explicit Cash Flows and Discounted Terminal Value

5Y Explicit PV: $2.16B (26.4%)Terminal PV: $6.02B (73.6%)

(+) Balance Sheet Cash & Equivalents+$64.0M

(−) Total Debt Obligations−$1.43B

(=) Implied Equity Value (333.8M shs)$6.82B

2D Institutional Valuation Sensitivity Heatmap

Implied share price & upside/downside spread across 25 valuation states (Current Price: $38.07).

WACC \ Terminal	1.5%	2.0%	2.5%	3.0%	3.5%
8.5%	$23.16 -39%	$24.84 -35%	$26.81 -30%	$29.13 -23%	$31.92 -16%
9.3%	$20.41 -46%	$21.74 -43%	$23.26 -39%	$25.03 -34%	$27.10 -29%
10.0%	$18.15 -52%	$19.21 -50%	$20.42 -46%	$21.81 -43%	$23.40 -39%
10.8%	$16.26 -57%	$17.13 -55%	$18.11 -52%	$19.21 -50%	$20.47 -46%
11.5%	$14.65 -62%	$15.37 -60%	$16.18 -58%	$17.08 -55%	$18.09 -52%

Section 2 · Fundamental Underwriting

Institutional Software Quality Scorecard (83/100 · Grade A)

High-Quality Compounder

Strong fundamentals, above-average cash generation, and robust competitive positioning.

Cash Conversion25 / 25

Actual: 139% of EBITTarget: Target: ≥100%

Elite deferred revenue float; FCF exceeds operating income by >20%

Dilution Friction21 / 25

Actual: 5.5% of RevTarget: Target: ≤8%

Disciplined equity compensation well below software industry average

Unit Economics25 / 25

Actual: 81% GM / R40: 42%Target: Target: ≥75% GM / ≥40% R40

Elite Tier-1 SaaS compounder with high gross margin and superior Rule of 40

Balance Sheet12 / 25

Actual: -$1.36B Net DebtTarget: Target: Net Cash > 0

Moderate leverage or cash burn; monitor liquidity runway

Core Investment Strengths & Moats

High-grade cash conversion: FCF is 139% of EBIT driven by upfront annual collections
Top-quartile software unit economics: 80.9% gross margin and 42.1% Rule of 40 score

Key Operational & Dilution Risks

Section 3 · Expectations Investing

Reverse-DCF Solver: What Growth is Priced Into BSY?

Aggressive Growth Expectations Priced In

The current share price demands 25.0% 5-year CAGR (27.9% net of SBC & dilution)—a +14.1% acceleration over historical run-rate (11.0%). Any growth slowdown risks valuation multiple contraction.

Implied 5-Year Revenue CAGR

25.0%

Required to justify $14.07B EV

Historical Run-Rate CAGR

11.0%

Audited multi-year top-line trajectory

Growth Hurdle Spread

+14.1%

Implied hurdle minus historical growth

Implied FCF Margin @ Hist. Growth

53.6%

Steady-state FCF margin needed at current CAGR

Institutional Dilution-Adjusted Hurdle Lens

Headline Reverse-DCF ignores Stock-Based Compensation (5.5% of revenue) and annual share dilution (0.3%/yr). Accounting for both requires 27.9% 5-year revenue CAGR to justify $38.07/sh on a true per-share economic cash flow basis.

True Economic Hurdle27.9%

SBC & Dilution Hurdle Tax+2.9% / yr

Section 4 · 5-Year Forecast Schedule

BENTLEY SYSTEMS INC (BSY) 5-Year Fundamental Forecast

Customize in Live Engine

Statement Line Item	TTM Audited Base	TTM	Y1	Y2	Y3	Y4	Y5
Revenue	$1.35B	$1.35B	$1.50B	$1.67B	$1.85B	$2.05B	$2.28B
Gross Profit	$1.10B	$1.10B	$1.22B	$1.35B	$1.50B	$1.66B	$1.84B
Operating Income (EBIT)	$302.2M	$302.1M	$335.3M	$372.0M	$412.8M	$458.0M	$508.2M
Stock-Based Compensation (SBC)	$74.4M	$74.4M	$82.6M	$91.6M	$101.7M	$112.8M	$125.2M
Unlevered Free Cash Flow (FCF)	$421.2M	$421.2M	$467.4M	$518.6M	$575.4M	$638.5M	$708.5M
SBC-Adjusted True Cash Flow	$346.8M	$346.8M	$384.8M	$427.0M	$473.8M	$525.7M	$583.3M

Section 5 · Relative Valuation Multiples & Regression

Software & Cloud Services Peer Comparables & Rule of 40 Regression

Click any peer node or ticker to open its dedicated equity research report

Rule of 40 vs. EV / Revenue Multiple Regression

OLS Fit: EV/Rev = -20.8 + 0.65 × (Rule of 40) · R² = 66%

Stocks below the gold regression line trade at a discount relative to their Rule of 40 compounding efficiency.

BSY Actual vs. Reg. Multiple10.4× vs 6.4× fair

Reg.-Implied Share Price$22.00 (+61.7% Premium)

BSYBENTLEY SYSTEMS INC·Rule of 40: 42.1%·Actual EV/Rev: 10.4×·Regression Fair Multiple: 6.4×

+61.7% Above Trendline (Premium)Open BSY Report

Company	Ticker	Market Cap	TTM Revenue	Gross Margin	FCF Margin	Rule of 40	SBC % Rev	EV / Rev
BENTLEY SYSTEMS INC	BSY	$12.71B	$1.35B	81.0%	31.1%	42.1%	5.5%	10.4×
ServiceNow	NOW	$152.61B	$10.98B	79.2%	31.1%	54.2%	15.9%	13.9×
Workday, Inc.	WDAY	$50.35B	$8.00B	75.0%	27.4%	43.9%	19.0%	6.4×
Salesforce	CRM	$217.10B	$37.90B	77.2%	32.8%	42.8%	8.4%	5.8×
Datadog	DDOG	$46.05B	$2.68B	80.8%	31.1%	57.7%	21.3%	17.4×
Snowflake Inc.	SNOW	$71.79B	$3.63B	66.5%	25.2%	57.7%	40.8%	20.0×
Hubspot	HUBS	$19.89B	$2.63B	85.0%	21.3%	52.7%	19.2%	7.7×
Peer Cohort Median Benchmark (N=6)				78.2%	29.2%	53.5%	19.1%	10.8×

Section 6 · Downside Protection & Multiple Sensitivity

EV / Revenue Multiple Compression Stress Test

Multiple Scenario	EV / Revenue	Implied Enterprise Value	Implied Equity Value	Implied Share Price	Delta vs Current
Current Multiple	10.4×	$14.07B	$12.71B	$38.07	0.0%
-20% Multiple Compression	8.3×	$11.26B	$9.89B	$29.64	-20.0%
-35% Multiple Compression	6.8×	$9.15B	$7.78B	$23.32	-35.0%
Software Baseline Floor (5.0× EV/Rev)	5.0×	$6.77B	$5.40B	$16.19	-51.9%

Section 7 · Investor Diligence FAQ

Frequently Asked Questions: BENTLEY SYSTEMS INC (BSY) Valuation

What is BENTLEY SYSTEMS INC (BSY)'s intrinsic DCF valuation and implied share price?

Based on audited SEC 10-K/10-Q filings and a 5-year 3-statement discounted cash flow (DCF) model, BENTLEY SYSTEMS INC (BSY) has a Base Case implied value of $20.41 per share (with a Bear Case of $8.52 and a Bull Case of $34.93), compared to its current price of $38.07. The model discounts projected free cash flows at a 10.0% WACC and a 2.5% terminal growth rate.

What is BENTLEY SYSTEMS INC (BSY)'s Rule of 40 score and Free Cash Flow margin?

BENTLEY SYSTEMS INC achieves a Rule of 40 score of 42.1%, combining a 11.0% revenue growth run-rate with a 31.1% TTM free cash flow margin on $1.35B in trailing twelve-month revenue. In the Software & Cloud Services peer cohort, the median Rule of 40 benchmark is 53.5%.

What revenue growth rate is priced into BSY stock according to Reverse-DCF analysis?

At $38.07 per share (Enterprise Value of $14.07B), our Reverse-DCF solver indicates the market is pricing in a 5-year implied revenue CAGR of 25.0%, compared to BENTLEY SYSTEMS INC's historical CAGR of 11.0%. Overall market expectations are rated as "Aggressive Growth Expectations Priced In".

How does BENTLEY SYSTEMS INC compare to Software & Cloud Services software peers?

BENTLEY SYSTEMS INC (BSY) earns an institutional Software Quality Score of 83/100 (Grade A — High-Quality Compounder). Across its Software & Cloud Services peer group (NOW, WDAY, CRM, DDOG, SNOW), the cohort trades at a median EV/TTM Revenue multiple of 10.8× and a median gross margin of 78.2%.

How does Stock-Based Compensation (SBC) impact BENTLEY SYSTEMS INC (BSY)'s valuation?

BENTLEY SYSTEMS INC recorded $74.4M in TTM stock-based compensation (5.5% of revenue). When treating SBC as a cash-equivalent compensation expense, BENTLEY SYSTEMS INC's SBC-adjusted free cash flow yield is 2.7%, scoring 21/25 on our Shareholder Dilution Friction pillar.

BENTLEY SYSTEMS INC (BSY) DCF Valuation & Fundamental Primer

WACC \ Terminal

1.5%

2.0%

2.5%

3.0%

3.5%

8.5%

$23.16

-39%

$24.84

-35%

$26.81

-30%

$29.13

-23%

$31.92

-16%

9.3%

$20.41

-46%

$21.74

-43%

$23.26

-39%

$25.03

-34%

$27.10

-29%

10.0%

$18.15

-52%

$19.21

-50%

$20.42

-46%

$21.81

-43%

$23.40

-39%

10.8%

$16.26

-57%

$17.13

-55%

$18.11

-52%

$19.21

-50%

$20.47

-46%

11.5%

$14.65

-62%

$15.37

-60%

$16.18

-58%

$17.08

-55%

$18.09

-52%

Statement Line Item

TTM Audited Base

TTM

Revenue

$1.35B

$1.50B

$1.67B

$1.85B

$2.05B

$2.28B

Gross Profit

$1.10B

$1.22B

$1.35B

$1.50B

$1.66B

$1.84B

Operating Income (EBIT)

$302.2M

$302.1M

$335.3M

$372.0M

$412.8M

$458.0M

$508.2M

Stock-Based Compensation (SBC)

$74.4M

$82.6M

$91.6M

$101.7M

$112.8M

$125.2M

Unlevered Free Cash Flow (FCF)

$421.2M

$467.4M

$518.6M

$575.4M

$638.5M

$708.5M

SBC-Adjusted True Cash Flow

$346.8M

$384.8M

$427.0M

$473.8M

$525.7M

$583.3M

Company

Ticker

Market Cap

TTM Revenue

Gross Margin

FCF Margin

Rule of 40

SBC % Rev

EV / Rev

BENTLEY SYSTEMS INC

BSY

$12.71B

$1.35B

81.0%

31.1%

42.1%

5.5%

10.4×

ServiceNow

NOW

$152.61B

$10.98B

79.2%

31.1%

54.2%

15.9%

13.9×

Workday, Inc.

WDAY

$50.35B

$8.00B

75.0%

27.4%

43.9%

19.0%

6.4×

Salesforce

CRM

$217.10B

$37.90B

77.2%

32.8%

42.8%

8.4%

5.8×

Datadog

DDOG

$46.05B

$2.68B

80.8%

31.1%

57.7%

21.3%

17.4×

Snowflake Inc.

SNOW

$71.79B

$3.63B

66.5%

25.2%

57.7%

40.8%

20.0×

Hubspot

HUBS

$19.89B

$2.63B

85.0%

21.3%

52.7%

19.2%

7.7×

Peer Cohort Median Benchmark (N=6)

78.2%

29.2%

53.5%

19.1%

10.8×

Multiple Scenario

EV / Revenue

Implied Enterprise Value

Implied Equity Value

Implied Share Price

Delta vs Current

Current Multiple

10.4×

$14.07B

$12.71B

$38.07

0.0%

-20% Multiple Compression

8.3×

$11.26B

$9.89B

$29.64

-20.0%

-35% Multiple Compression

6.8×

$9.15B

$7.78B

$23.32

-35.0%

Software Baseline Floor (5.0× EV/Rev)

5.0×

$6.77B

$5.40B

$16.19

-51.9%

BENTLEY SYSTEMS INC (BSY) 3-Scenario DCF Valuation Range

2D Institutional Valuation Sensitivity Heatmap

Institutional Software Quality Scorecard (83/100 · Grade A)

Core Investment Strengths & Moats

Key Operational & Dilution Risks

Reverse-DCF Solver: What Growth is Priced Into BSY?

BENTLEY SYSTEMS INC (BSY) 5-Year Fundamental Forecast

Software & Cloud Services Peer Comparables & Rule of 40 Regression

Rule of 40 vs. EV / Revenue Multiple Regression

EV / Revenue Multiple Compression Stress Test

Frequently Asked Questions: BENTLEY SYSTEMS INC (BSY) Valuation

What is BENTLEY SYSTEMS INC (BSY)'s intrinsic DCF valuation and implied share price?

What is BENTLEY SYSTEMS INC (BSY)'s Rule of 40 score and Free Cash Flow margin?

What revenue growth rate is priced into BSY stock according to Reverse-DCF analysis?

How does BENTLEY SYSTEMS INC compare to Software & Cloud Services software peers?

How does Stock-Based Compensation (SBC) impact BENTLEY SYSTEMS INC (BSY)'s valuation?

Related Software & Cloud Services Equity Research Reports

BENTLEY SYSTEMS INC (BSY) 3-Scenario DCF Valuation Range

2D Institutional Valuation Sensitivity Heatmap

Institutional Software Quality Scorecard (83/100 · Grade A)

Core Investment Strengths & Moats

Key Operational & Dilution Risks

Reverse-DCF Solver: What Growth is Priced Into BSY?

BENTLEY SYSTEMS INC (BSY) 5-Year Fundamental Forecast

Software & Cloud Services Peer Comparables & Rule of 40 Regression

Rule of 40 vs. EV / Revenue Multiple Regression

EV / Revenue Multiple Compression Stress Test

Frequently Asked Questions: BENTLEY SYSTEMS INC (BSY) Valuation

What is BENTLEY SYSTEMS INC (BSY)'s intrinsic DCF valuation and implied share price?

What is BENTLEY SYSTEMS INC (BSY)'s Rule of 40 score and Free Cash Flow margin?

What revenue growth rate is priced into BSY stock according to Reverse-DCF analysis?

How does BENTLEY SYSTEMS INC compare to Software & Cloud Services software peers?

How does Stock-Based Compensation (SBC) impact BENTLEY SYSTEMS INC (BSY)'s valuation?

Related Software & Cloud Services Equity Research Reports