Truecaller (OM:TRUE B): Valuation Spotlight After Launch of Verified Business Platform in Europe

Truecaller (OM:TRUE B) unveiled its Verified Business Customer Experience Platform in Europe, aiming to help enterprises improve trust and boost call pickup rates. This launch further strengthens Truecaller’s business solutions across a key global market.

See our latest analysis for Truecaller.

Truecaller’s fresh launch in Europe follows the rollout of adVantage, its AI-powered recommendation engine, and the company recently surpassing 450 million monthly active users. Still, momentum in the share price has cooled this year, with a year-to-date share price return of -24.9% and a 1-year total shareholder return of -11.3%. Over the longer term, however, investors holding for three years have enjoyed a 17.4% total return, which suggests underlying business resilience even as the market reassesses near-term risk and growth potential.

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With shares trading at a sizable discount to analyst targets, but recent price declines reflecting market caution, should investors see Truecaller as an undervalued growth story, or is all future potential already factored in?

Most Popular Narrative: 44.3% Undervalued

With Truecaller recently closing at SEK38.96 while the most popular narrative pegs fair value at SEK70, there is a wide gap between perceived potential and market sentiment. This sharp discount hints at investor skepticism or uncertainty. At the same time, consensus foresees significant fundamentals powering a much higher 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 is fueling such a bullish estimate? The narrative is built on bold projections for recurring revenue growth and surprisingly aggressive margin improvement, but will actual results match these ambitious targets? Uncover the financial assumptions underneath this eye-catching fair value.

Result: Fair Value of $70 (UNDERVALUED)

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

However, persistent heavy reliance on foreign ad revenues and potential currency risk could still threaten the positive outlook for Truecaller’s margin and earnings growth.

Find out about the key risks to this Truecaller narrative.

Build Your Own Truecaller Narrative

If you see things differently or like to back up your own opinions with firsthand research, you can shape a narrative in just minutes: 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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