Truecaller (OM:TRUE B) Valuation in Focus After Mixed Earnings and Ongoing Share Price Decline

Truecaller (OM:TRUE B) released its latest earnings report, drawing investor focus as sales for the third quarter and nine-month period grew year over year, while profits saw a decline.

See our latest analysis for Truecaller.

Despite steady sales growth, Truecaller’s share price return over the past year has been sharply negative, with a 1-year share price return of -46.42% and a total shareholder return of -40.80%. Recent quarterly results and declining profits appear to have weighed on investor sentiment, as momentum has faded and the shares have dropped significantly over the past month and quarter.

If you’re rethinking your investment approach after these moves, it could be the perfect moment to discover fast growing stocks with high insider ownership.

With the stock trading well below analyst price targets, investors are left to consider whether Truecaller is currently undervalued or if the market is accurately factoring in its slowing profit growth. Is there a buying opportunity, or are expectations already set?

Most Popular Narrative: 56.6% Undervalued

Compared to its last close of SEK27.78, the narrative’s fair value estimate of SEK64 signals a sharp disconnect between market price and fundamental expectations. Here is what is driving this markedly bullish view according to the most widely followed narrative.

The ongoing pivot towards higher-margin, recurring subscription revenue, with notable acceleration on iOS (25% QoQ subscriber growth and 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.

Curious which bold financial forecasts justify this aggressive valuation? Behind this narrative are ambitious assumptions about future subscription growth, margin expansion, and user engagement. What is the full story that has analysts seeing so much upside? Read on to uncover the detailed logic and numbers fueling this fair value calculation.

Result: Fair Value of SEK64 (UNDERVALUED)

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

However, persistent dependence on volatile ad markets and currency swings in core regions remain key risks that could challenge the bullish outlook for Truecaller.

Find out about the key risks to this Truecaller narrative.

Build Your Own Truecaller Narrative

If this perspective doesn't align with your own, or if you'd rather chart your own course, you can easily build your own narrative in just a few minutes: Do it your way.

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

Ready for Your Next Opportunity?

Do not let today’s market moves limit your ambition. Supercharge your search for standout stocks with powerful tools designed to put tomorrow’s winners on your radar.

• Snap up potential bargains by scanning these 840 undervalued stocks based on cash flows, packed with stocks that may be trading below their true worth right now.
• Generate consistent cash flow by reviewing these 20 dividend stocks with yields > 3%, featuring companies with strong yields that can strengthen your portfolio’s returns.
• Accelerate your growth journey by investigating these 26 AI penny stocks, spotlighting innovators riding the AI megatrend and shaping the years ahead.

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.

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