Blog

BILL Holdings (BILL) shares have moved within a tight range this week, catching some attention as investors weigh the impact of recent earnings trends alongside weaker year-to-date returns. The conversation now centers on where the stock could head next.

See our latest analysis for BILL Holdings.

While BILL Holdings’ share price has stabilized this week, overall momentum is still struggling to rebuild. After a tough start to 2024 with a year-to-date share price return of -39.07%, the stock’s recent 11.16% rally over the last 90 days stands out. However, its 1-year total shareholder return of -6.5% and three-year total shareholder return of -61.78% underscore the challenges holders have faced in both the short and long term.

If today’s volatility has you thinking about what else might be gaining ground, now is a great moment to discover fast growing stocks with high insider ownership

So with BILL Holdings now trading nearly 45% below estimated intrinsic value and about 21% below analyst targets, is this an undervalued opportunity, or are markets already factoring in the company’s future prospects?

The widely followed narrative sets BILL Holdings’ fair value at $61.05, which is 16% above its last closing price of $51.21. This difference suggests investors are weighing ambitious growth and margin forecasts against current market skepticism.

“Accelerated rollout of AI-powered financial operations agents and intelligent automation solutions is expected to drive higher customer retention, greater product adoption, and potentially enable new subscription-based pricing tiers. These factors could support future revenue growth and enhance margins. Expansion of embedded finance capabilities and the Embed 2.0 strategy, including strategic partnerships with large enterprise software platforms, is set to broaden BILL’s distribution channels and could significantly increase customer acquisition and transaction volumes. This may translate into higher long-term revenues.”

Read the complete narrative.

Want to decode the numbers behind this bold valuation? The most popular narrative hinges on an aggressive margin outlook and a multi-year leap in profitability. Curious if the growth projections break the mold in software? Find out what else could drive BILL Holdings far above today’s price targets.

Result: Fair Value of $61.05 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, ongoing macroeconomic uncertainty and strong competition from larger fintech players could quickly unravel even the most optimistic growth projections for BILL Holdings.

Find out about the key risks to this BILL Holdings narrative.

If you see BILL Holdings differently or want your own perspective, take the numbers for a spin and craft a unique story in just a few minutes. Do it your way.

A great starting point for your BILL Holdings research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Smart investors never settle for one opportunity when the market is full of hidden gems. Don’t let the best prospects pass you by; expand your research now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BILL.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com