A Look at ExlService Holdings (EXLS) Valuation Following Whitbread Renewal and Data-Driven Wins

ExlService Holdings (EXLS) just renewed its collaboration with Whitbread, focusing on transforming finance and accounting operations for the UK’s leading hospitality provider. This multi-year deal highlights EXL’s ability to deliver measurable cost savings and efficiency to large clients.

See our latest analysis for ExlService Holdings.

After a robust run in recent years, ExlService Holdings’ latest moves, including the Whitbread renewal and a new AI data suite, reflect a push to strengthen its offering and deepen client value. Despite these initiatives, the past year’s total shareholder return is down fractionally at -0.15%. Its three- and five-year total shareholder returns remain standout at 22.9% and 167.2% respectively, suggesting strong long-term momentum even as short-term share price performance has softened.

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With long-term performance still impressive and a significant discount to analyst price targets, investors now face a critical question: is EXLS a bargain with more upside, or is future growth already reflected in its share price?

Most Popular Narrative: 24% Undervalued

With a fair value of $53.29, more than $12 above the last close of $40.34, the prevailing narrative sets ambitious expectations for ExlService Holdings. Strong recent earnings, deep industry investment, and technology partnerships fuel this outlook and point to robust future opportunities.

The accelerated global adoption of AI and digital transformation in regulated industries is expanding the addressable market for ExlService, driving strong double-digit pipeline and growing annuity-like revenues; this trend supports sustained revenue growth and improved earnings visibility. Increasing reliance by clients on advanced data and AI-driven solutions for operational efficiency positions ExlService to generate higher-margin services, benefiting both revenue mix and long-term margin expansion as traditional usage-based contracts transition to outcome-based commercial models.

Read the complete narrative.

Want a peek behind the curtain? This narrative banks on a wave of recurring revenue and a major profit margin shift. There’s a set of analyst assumptions powering that price target, from top-line growth moves to changing how profits stack up. Ready to see what’s tipping the scales in ExlService’s favor?

Result: Fair Value of $53.29 (UNDERVALUED)

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

However, heavy reliance on a few sectors and rising costs for skilled talent could threaten ExlService’s margins and earnings growth if trends worsen.

Find out about the key risks to this ExlService Holdings narrative.

Build Your Own ExlService Holdings Narrative

If you see the story differently or want to dive deeper into the numbers yourself, you can craft your own narrative in just a few minutes. Do it your way

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

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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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