A Fresh Look at Alight (ALIT) Valuation Following CEO Appointment News

Alight (ALIT) is making a leadership change, with Rohit Verma set to become the company's next Chief Executive Officer and board member in January 2026. Verma’s arrival comes after a track record of driving growth and transformation at Crawford & Company. This move draws attention to the potential for strategic shifts at Alight.

See our latest analysis for Alight.

While the leadership news has generated fresh buzz, Alight’s share price return tells a tougher story, with a 1-year share price decline of more than 65% and a 3-year total shareholder return of -73%. This reflects the challenges the company faces. Despite a recent short-term rebound of over 17% in the past week, momentum remains clouded by longer-term weakness. This suggests investors are still weighing the turnaround potential against ongoing risks.

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With shares trading at a deep discount to analyst targets and a recent leadership shakeup, the real question for investors is whether Alight’s struggles have created a buying opportunity or if the market already reflects future growth ambitions.

Most Popular Narrative: 60% Undervalued

With Alight closing at $2.33 and the most widely followed narrative estimating fair value over double that figure, the debate about upside is heating up. The narrative points to key business transformations and partnerships as critical drivers behind this view.

Expanding partnerships, such as the new alliance with Goldman Sachs Asset Management, are expected to unlock new recurring revenue streams (e.g., wealth management products) and broaden Alight's addressable market, contributing to future revenue growth.

Read the complete narrative.

Curious what future growth path could support that bold valuation? There is a set of underlying assumptions about future profit margins, revenue, and even share count that drive this price target. The full narrative reveals how analyst forecasts stack up if you are ready for the real numbers behind the optimism.

Result: Fair Value of $5.86 (UNDERVALUED)

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

However, slower client signings and ongoing pressure on project-related revenue could quickly undermine the growth and margin improvements that many anticipate for Alight.

Find out about the key risks to this Alight narrative.

Build Your Own Alight Narrative

If you think the story here is still unfolding or would rather take a hands-on approach, you can shape your own view in just minutes, Do it your way

A great starting point for your Alight research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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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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