Every month, we highlight three of the best buying opportunities from our database. This is an opinion on which stocks will most likely outperform over the next 5 years at today’s prices.

One of the defining questions of 2026 has been: what does AI actually do to software's business model? The answer, for much of the sector, has been brutal. The “SaasPocalypse” narrative has sliced valuations in half (or worse) across names that spent the past fifteen years looking untouchable.

But the market is slowly waking up to the fact that not all software is created equal. Unlike its horizontal counterpart, vertical software is built for a specific industry, embedded in mission-critical workflows, sitting on top of proprietary client data, and backed by relationships forged over years. This is software with real switching costs.

Nemetschek sits squarely in this camp. It serves the AEC/O world (architecture, engineering, construction, and operations), an industry that is vast, fragmented, and, frankly, still running on fax machines and physical spreadsheets.

Nemetschek has been caught in the broader software selloff, and its EV/FCF multiple now sits around 21x, one of the lowest entry points the stock has offered in years, for a business whose quality has not deteriorated one bit.

So why does the underlying opportunity remain compelling? Three reasons.

First, construction is structurally ripe for a digital reckoning. It is one of the least digitised major industries on earth, characterised by fragmentation, inefficiency, and a near-total absence of standardised workflows. Nemetschek doesn't need to take share from a digitally sophisticated incumbent; it needs to replace the clipboard.

Second, demographics are doing the heavy lifting. A rising global population combined with accelerating urbanisation, particularly across the developing world, means the demand for new buildings, infrastructure, and civil engineering projects isn't going away.

Third, and perhaps most under-appreciated: the world's existing infrastructure is ageing. Roads, bridges, utilities, and buildings across Europe and North America were built decades ago and are increasingly in need of renovation.

Model assumes 14% revenue growth per year, a cash flow margin of 30%, 115.5 million shares outstanding at the end of the period, dividend growth of 6%, and a terminal multiple of 22x

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