Truecaller (OM:TRUE B): Assessing Valuation After Leadership Changes in Ad Solutions Segment

Truecaller (OM:TRUE B) recently named new leaders to head its Ad Solutions segment, signaling a focused move to strengthen its advertising offerings and tap into data-driven growth opportunities.

See our latest analysis for Truecaller.

Truecaller’s appointment of new leaders to its Ad Solutions segment comes at a time when the stock’s momentum has been modest, with a 1-year total shareholder return of just 0.07%. Recent weeks have seen quiet price action, but these strategic changes could help reinvigorate growth expectations for the longer term.

If news of Truecaller’s leadership shakeup caught your interest, this is a perfect moment to broaden your horizons and discover fast growing stocks with high insider ownership

With shares recently lagging and the stock still trading at a substantial discount to analyst targets, investors must now ask: Is Truecaller an overlooked value play, or is the market already factoring in all its future growth?

Most Popular Narrative: 45.8% Undervalued

Truecaller’s most widely followed valuation narrative places its fair value at SEK74.17 per share. This represents a striking premium compared to the recent last close of SEK40.18. The difference sets the context for a bold outlook, supported by long-term growth catalysts that extend far beyond today’s price.

The ongoing pivot towards higher-margin, recurring subscription revenue, with notable acceleration on iOS (25% QoQ subscriber growth/50% YoY), and expansion of B2B offerings (Truecaller for Business, identity APIs) are diversifying revenue streams, lowering reliance on cyclical ad spend, and creating more stable, predictable cash flows and long-term profit growth.

Read the complete narrative.

What drives this eye-catching upside? The narrative relies on ambitious targets for user monetization, margin expansion, and a future profit multiple that is typically reserved for market leaders. Curious about the projections and core business shifts powering this steep fair value estimate? Unlock the full story to see which bold forecasts shape this valuation.

Result: Fair Value of $74.17 (UNDERVALUED)

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

However, heavy reliance on India for revenues and ongoing macro headwinds in the advertising market could undermine Truecaller’s growth story and its near-term margin outlook.

Find out about the key risks to this Truecaller narrative.

Build Your Own Truecaller Narrative

If you have a different perspective or want to dive into the numbers yourself, you can craft your own analysis in just a few minutes, and Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Truecaller.

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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.

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