Is Intuit Inc (INTU) overvalued?
On Equity Rank's model estimate, INTU trades 15% below its fair value. Intuit Inc (INTU) last closed at $341.50; the multi-method model fair value is $401.14.
| Price | Model fair value | Price vs model |
|---|---|---|
| $341.50 | $401.14 | 15% below |
What the answer rests on
- 6 of 9 valuation methods put INTU's value above its price and 3 put it below, so the methods disagree.
- To justify today's price, INTU's free cash flow would need to grow about -2.5% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 21.6% a year.
- INTU trades at 21.7 times its last year's earnings, against a median of 31.4 for 87 profitable Software companies.
- Over the past year the price sat below the model fair value on 77% of trading days. The gap ranged from 44% below to 15% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind INTU's fair value · What prices assume · Other companies