Booz Allen Hamilton (BAH): Assessing Valuation After Recent 12% Decline

Booz Allen Hamilton Holding (BAH) has moved lower over the past month, with shares declining nearly 12%. Despite the slide, the stock remains an interesting follow for those watching government consulting names, especially given its steady revenue.

See our latest analysis for Booz Allen Hamilton Holding.

This continued slide comes after a tough year for Booz Allen Hamilton Holding, as momentum has faded following a long stretch of steady revenue. The 1-year total shareholder return is down nearly 50 percent, which suggests that risk concerns may be outweighing optimism in the near term, even as the stock maintains a solid long-term reputation.

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With Booz Allen’s steep decline and a clear gap between its market price and analyst targets, investors are left wondering whether this is a hidden bargain or if the market has already accounted for every bit of potential growth.

Most Popular Narrative: 16.4% Undervalued

Compared to the last close at $84.85, the most widely followed narrative claims Booz Allen Hamilton Holding’s fair value sits higher, drawing on a mix of recent contract wins and future earnings projections. The analysis blends anticipated growth, contracting shifts, and evolving margins to reach this conclusion.

Heightened global security threats and modernization priorities, reflected in rising defense and intelligence demand and new funding streams (e.g., Golden Dome, missile defense), will likely sustain long-term contract growth and increase revenue visibility. Enhanced use of AI and automation both internally (boosting productivity, as seen in rising revenue per employee) and in client solutions supports margin expansion and positions Booz Allen to capitalize on industry-wide moves toward tech-enabled, recurring revenue business models.

Read the complete narrative.

Want to know what bold assumptions make up this price target? Tension between government funding, profit expectations, and margin changes set the stage for this call. The full narrative uncovers what really drives the irresistible fair value calculation. Don't miss what's fueling these projections.

Result: Fair Value of $101.50 (UNDERVALUED)

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

However, persistent government funding delays and increased competition could quickly undermine Booz Allen’s growth outlook and put further pressure on long-term margins.

Find out about the key risks to this Booz Allen Hamilton Holding narrative.

Build Your Own Booz Allen Hamilton Holding Narrative

If the current narrative doesn't fit your view or you'd rather dive deeper yourself, you can build your own in just a few minutes by using Do it your way.

A great starting point for your Booz Allen Hamilton Holding research is our analysis highlighting 2 key rewards and 3 important warning signs 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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