A Fresh Look at CBIZ (CBZ) Valuation After Recent Share Price Pullback

CBIZ (CBZ) shares have been under pressure lately, slipping 6% over the past month and losing 23% in the past 3 months. With long-term returns still positive, investors may be reassessing valuation.

See our latest analysis for CBIZ.

While CBIZ’s recent 30-day share price return of -6.3% signals a cooling off in momentum, the company’s long-term track record is much stronger, with a total shareholder return of 126% over the past five years. This pullback has some investors wondering whether current valuations could hint at renewed opportunity or a shift in risk perceptions.

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With shares now trading at a steep discount to analyst targets and fundamentals showing healthy growth, investors face a pivotal question: is CBIZ undervalued and offering a chance to buy, or is future growth already reflected in the price?

Most Popular Narrative: 41% Undervalued

CBIZ’s consensus narrative pegs fair value at $95 per share, a striking premium to the last close. Such an ambitious target highlights bullish expectations around growth initiatives and profitability over the next several years.

The Marcum acquisition has significantly expanded CBIZ's client base, increased scale, and strengthened capabilities in core tax, accounting, and advisory services. This enables the firm to leverage cross-selling, deepen client relationships, and improve its competitive position in target middle-market segments. This is expected to fuel higher future revenue growth and structural margin expansion as integration synergies are realized.

Read the complete narrative.

Want to see what’s powering this steep valuation gap? The narrative leans on projections for faster profit growth and margin expansion as scale and integration play out. The story hints at numbers and assumptions that could change how investors look at CBIZ’s potential. Curious about the bold drivers behind that high price target? Discover the catalysts that could make headlines and move the stock.

Result: Fair Value of $95 (UNDERVALUED)

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

However, persistent pricing pressures and ongoing integration risks from recent acquisitions could challenge assumptions behind those bullish forecasts and affect future earnings power.

Find out about the key risks to this CBIZ narrative.

Build Your Own CBIZ Narrative

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

A great starting point for your CBIZ 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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