Stock Analysis & Valuation TeamViewer AG (TMV.DE)

• Previous Close: €5.66
• Sector Valuation Confidence Level: Low

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	37.42	561
Intrinsic value (DCF)	12.29	117
Graham-Dodd Method	0.30	-95
Graham Formula	11.54	104

Strategic Investment Analysis

Company Overview

TeamViewer AG (TMV.DE) is a leading global provider of remote connectivity and workplace digitalization solutions. Headquartered in Göppingen, Germany, the company specializes in secure remote access, IT management, augmented reality (AR) support, and IoT device control. Its flagship product, TeamViewer, enables cross-platform remote desktop access, file sharing, and online collaboration, serving over 2.5 billion devices annually. The company has expanded its offerings with enterprise-grade solutions like TeamViewer Tensor for large-scale deployments, TeamViewer Frontline for AR-powered workforce assistance, and TeamViewer Engage for digital customer engagement. Operating in the fast-growing Software-as-a-Service (SaaS) sector, TeamViewer caters to diverse industries including IT services, healthcare, manufacturing, and education. With a strong focus on security and ease of use, the company has become a trusted name in remote work solutions, particularly since the COVID-19 pandemic accelerated digital transformation. TeamViewer's freemium model drives user adoption while its subscription-based revenue ensures recurring income streams.

Investment Summary

TeamViewer presents an intriguing investment case as a leader in remote connectivity solutions with strong recurring revenue potential. The company benefits from secular tailwinds including remote work adoption, digital transformation, and IoT expansion. However, investors should note the highly competitive nature of the remote desktop software market and TeamViewer's premium valuation (EV/Revenue ~2.4x). While the company maintains robust gross margins (~90%), its growth has moderated post-pandemic, and it faces challenges in upselling enterprise customers. The debt position (€444.6M) warrants monitoring, though strong operating cash flow (€249.2M) provides financial flexibility. With no dividend payout, investment returns will depend on growth execution and market share retention against well-capitalized competitors.

Competitive Analysis

TeamViewer holds a strong position in the remote access software market, differentiated by its ease of use, cross-platform compatibility, and security features. The company's competitive advantage stems from its early mover status, strong brand recognition, and network effects - many users adopt TeamViewer because their partners/clients already use it. Their freemium model creates a wide user base that can be converted to paid plans. However, the market is becoming increasingly crowded with both specialized players and tech giants offering competing solutions. TeamViewer's expansion into AR (Frontline) and IoT positions it for future growth areas but requires significant R&D investment. The company's European base provides some geographic differentiation but may limit traction in North America against local competitors. Pricing pressure is emerging as basic remote access becomes commoditized, forcing TeamViewer to emphasize premium features and enterprise solutions. Security concerns (past breaches) remain an ongoing reputational risk that competitors may exploit. The shift to cloud-based solutions gives an edge to providers with stronger cloud infrastructure partnerships.

Major Competitors

• LogMeIn (GoTo) (LOGI): LogMeIn (now GoTo) offers competing remote access solutions through GoToMyPC and Rescue. Strengths include strong enterprise penetration and bundled communication tools. Weaknesses include brand confusion post-merger and less intuitive UI compared to TeamViewer. Their pricing tends to be higher for equivalent features.
• Zoom Video Communications (ZM): Zoom has expanded from video conferencing into remote control with Zoom Apps and SDKs. Strengths include massive existing user base and superior video quality. Weaknesses include less mature remote access features and limited cross-platform support compared to TeamViewer. Zoom poses a growing threat in integrated collaboration solutions.
• Microsoft Corporation (MSFT): Microsoft's Remote Desktop and Windows 365 compete in enterprise IT management. Strengths include deep OS integration and Azure cloud synergy. Weaknesses include complexity for non-Windows environments and less user-friendly design. Microsoft's bundled offerings make them formidable in corporate IT but less so for SMBs and cross-platform use.
• Check Point Software Technologies (CHKP): Check Point offers remote access through Harmony Connect. Strengths include superior security features and enterprise trust. Weaknesses include higher cost and less focus on end-user remote support. They compete more directly in the secure access space than general remote control.
• AnyDesk Software (ANY): AnyDesk is TeamViewer's most direct private competitor with similar functionality. Strengths include lower pricing and faster connection speeds. Weaknesses include smaller brand recognition and less mature enterprise features. Their German base competes directly for EU market share.