Wondering if NICE stock could be a hidden gem or just another falling knife? You’re in the right place to get an honest, in-depth take on whether it’s time to buy or wait.
The stock has seen a dramatic ride lately, climbing 3.4% in the last week but still sitting 22.8% lower over the past month and down a hefty 45.6% year-to-date.
Recent market headlines have focused on sector-wide volatility and shifts in investor sentiment, with NICE specifically highlighted for its approach to new technology partnerships and industry collaborations. This extra context is key, as news-driven swings are impacting short-term moves and shaping longer-term expectations.
With a valuation score of 4 out of 6, there is a lot more to unpack below the surface. Let’s dig into how different valuation methods assess NICE, and stick around to the end for a perspective that might change how you think about value altogether.
Find out why NICE’s -48.1% return over the last year is lagging behind its peers.
A Discounted Cash Flow (DCF) model estimates a company’s intrinsic value by projecting its future cash flows and discounting them back to today’s value. This approach helps investors gauge what a business is truly worth compared to its share price in the market.
For NICE, its current Free Cash Flow stands at $684.36 Million. Analyst forecasts suggest steady growth, with projected Free Cash Flow reaching $963.8 Million by 2029. While analysts provide estimates for the next five years, Simply Wall St extends these projections further out and offers a longer-term perspective on future performance.
Using these cash flow projections, the DCF model calculates a fair value of $688.13 per share. This suggests the stock is trading at a 50.7% discount compared to its estimated intrinsic value, indicating it may be undervalued at current prices.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests NICE is undervalued by 50.7%. Track this in your watchlist or portfolio, or discover 920 more undervalued stocks based on cash flows.
NICE Discounted Cash Flow as at Nov 2025
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for NICE.
For profitable companies like NICE, the Price-to-Earnings (PE) ratio is a key valuation tool. It shows how much investors are willing to pay today for each dollar of last year’s earnings. This metric is especially useful because it captures both a company’s ability to generate profits and the market’s expectations around its future growth and risks.
Growth expectations and risk play a significant role in what constitutes a “normal” or “fair” PE. Higher growth companies often warrant higher multiples, while increased risk leads investors to be less willing to pay a premium. Therefore, looking only at the surface-level PE can be misleading if these factors are not taken into account.
NICE currently trades at a PE ratio of 11.5x. For context, the average Software industry PE is 27.6x, and the average for NICE’s direct peers is a much higher 46.0x. At first glance, NICE appears significantly cheaper than others in its space.
However, simply comparing with industry or peer averages does not provide the full picture. This is where the Simply Wall St “Fair Ratio” comes in. The Fair Ratio is a proprietary measure that considers a company’s own earnings growth, industry dynamics, profit margin, total market cap, and its unique risks. This more tailored approach helps move beyond the limitations of traditional benchmarking and offers a clearer sense of whether the stock’s valuation is justified.
For NICE, the Fair Ratio is calculated at 10.7x, which is very close to its current PE of 11.5x. This indicates the market price is generally in line with the company’s underlying fundamentals at present.
Result: ABOUT RIGHT
TASE:NICE PE Ratio as at Nov 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1443 companies where insiders are betting big on explosive growth.
Earlier, we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is your chance to put a story behind the numbers by combining what you know about a company’s strategy, risks, or catalysts, along with your assumptions for future revenue, earnings, and margins. Narratives connect your view of the company’s direction to a set of financial forecasts, which then generate your own fair value for the stock.
The beauty of Narratives is their accessibility. On Simply Wall St’s Community page, millions of investors use Narratives to create, refine, and share their perspectives on companies like NICE. This tool empowers you to outline your story, back it up with the factors you believe matter most, and see how your assumptions compare to both analyst estimates and the market price.
Narratives help you decide how your Fair Value relates to the current Price, and they dynamically update as new news or earnings are released, so your outlook stays relevant and actionable. For instance, one Narrative for NICE assumes rapid AI-driven revenue growth and gives a fair value over ₪750 per share, while a more cautious view highlights margin pressures and assigns a much lower value.
Do you think there’s more to the story for NICE? Head over to our Community to see what others are saying!
TASE:NICE Community Fair Values as at Nov 2025
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 NICE.TA.
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