Assessing Maximus (MMS) Valuation After Recent 8% Share Price Pullback

Maximus (MMS) shares have shown some movement this week, with the stock recently closing at $83.04. Over the past month, Maximus has experienced a modest decline of about 8%, even as its annual revenue and net income continue to grow.

See our latest analysis for Maximus.

While Maximus has dipped roughly 8% in share price over the past month, momentum remains positive from a broader perspective. The year-to-date share price return has climbed nearly 10%. The three-year total shareholder return of 39% points to consistent long-term gains despite some recent turbulence, reflecting solid growth and resilience in the business.

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With shares showing recent softness and trading below some analyst targets, the key question becomes whether Maximus is undervalued at current levels or if the market has already priced in its future growth prospects.

Most Popular Narrative: 20.9% Undervalued

With Maximus shares closing at $83.04, the most widely followed narrative points to a fair value estimate noticeably higher, suggesting the stock may be overlooked by the current market.

Elevated regulatory complexity and the growing need for technology-driven, outcome-based delivery are fueling increased spend by governments on third-party administrators like Maximus. This supports higher client retention, contract expansion, and strengthens EBITDA and net margins through scale and operational leverage.

Read the complete narrative.

What is the story beneath this valuation gap? The fair value here is built around an earnings surge and profit mix that most investors miss. Want to see which assumptions and industry shifts analysts say will push the stock far higher? Unlock the details behind this forecast and decide if the consensus adds up.

Result: Fair Value of $105 (UNDERVALUED)

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

However, slower federal contract volumes or accelerating digital self-service in government agencies could quickly reverse Maximus's recent momentum and reduce future growth expectations.

Find out about the key risks to this Maximus narrative.

Build Your Own Maximus Narrative

Prefer a different angle or want to check the figures for yourself? Shape a Maximus story that reflects your own perspective in just minutes. Do it your way

A great starting point for your Maximus research is our analysis highlighting 4 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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