Exploring Booz Allen Hamilton’s (BAH) Valuation After Analyst Downgrades and Earnings Estimate Revisions

Booz Allen Hamilton Holding is drawing investor attention ahead of its October 24 earnings announcement, as recent analyst downgrades and a declining consensus EPS have added new questions to the stock’s outlook.

See our latest analysis for Booz Allen Hamilton Holding.

Booz Allen Hamilton’s share price has slid over the past year, currently sitting at $97.14, with a 1-year total shareholder return of -39.17%. This recent dip reflects cautious sentiment following sluggish earnings outlooks and is testing investors’ conviction about the company’s longer-term growth prospects, even though its total return over five years is 32%.

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With the stock now trading well below analyst price targets and at a discount to its industry, investors must ask whether Booz Allen Hamilton is undervalued following its slump, or if the market is already pricing in muted future growth.

Most Popular Narrative: 23% Undervalued

Compared to its last close of $97.14, the most followed narrative sets Booz Allen Hamilton Holding’s fair value much higher, pointing toward a significant upside if expectations hold true. This narrative reflects analysts’ belief that Booz Allen’s government and technology exposure can unlock more value than the market now recognizes.

“Booz Allen is positioned to benefit from increased federal investment in digital transformation, AI, and cybersecurity, as evidenced by record backlog, major new awards (e.g., TOC-L for the Air Force, CBP cloud migration), and expanded tech partnerships. As procurement normalizes, this is likely to accelerate revenue growth.”

Read the complete narrative.

Curious about what’s pushing this stock’s value so far above its current price? The answer lies in a set of bold predictions, ranging from shrinking profit margins to an earnings profile that echoes the dynamics of major industry disruptors. Only in the full narrative will you uncover the revenue assumptions and projected profitability that power this 23% discount to fair value.

Result: Fair Value of $126.09 (UNDERVALUED)

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

However, persistent government funding delays or execution risks with complex technology contracts could undermine growth expectations and challenge the current undervalued outlook.

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

Build Your Own Booz Allen Hamilton Holding Narrative

Keep in mind, if this perspective doesn’t resonate with you or you’d like to dig into the details on your own, you can put together your own view in just a few minutes. Do it your way

A great starting point for your Booz Allen Hamilton Holding research is our analysis highlighting 3 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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