Is Veeva Systems Inc Class A (VEEV) overvalued?
On Equity Rank's model estimate, VEEV trades 31% above its fair value. Veeva Systems Inc Class A (VEEV) last closed at $303.73; the multi-method model fair value is $231.47.
| Price | Model fair value | Price vs model |
|---|---|---|
| $303.73 | $231.47 | 31% above |
What the answer rests on
- 0 of 8 valuation methods put VEEV's value above its price and 8 put it below, so the methods mostly agree.
- To justify today's price, VEEV's free cash flow would need to grow about 13.2% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 21.8% a year.
- VEEV trades at 50.9 times its last year's earnings, against a median of 31.1 for 87 profitable Software companies.
- Over the past year the price sat below the model fair value on 2% of trading days. The gap ranged from 1% below to 57% 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 VEEV's fair value · What prices assume · Other companies