Pitney Bowes (PBI): What Higher 2025 Earnings Estimates Mean for the Stock’s Current Valuation

Something is brewing with Pitney Bowes (PBI), and investors are starting to take notice. The latest catalyst is a fresh wave of analyst commentary pointing to an increase in consensus earnings estimates for fiscal 2025, along with favorable style scores and momentum signals. This adjustment in the outlook has made investors rethink what is possible for the company, especially as improved earnings expectations often catch the attention of those watching for shifts in sentiment. Looking at the numbers, Pitney Bowes has caught a strong updraft lately. Shares are up nearly 10% over the past month and more than 17% in the past three months, reflecting rising optimism. The stock has gained an impressive 70% year-to-date, and its one-year return is just shy of a double. This suggests positive momentum is building after years of mixed results and ongoing financial challenges. With this renewed interest and higher expectations being priced in, is Pitney Bowes setting up for another leg higher, or is the market already reflecting all the future growth in its current valuation?

Most Popular Narrative: 27.8% Undervalued

The prevailing narrative sees Pitney Bowes as significantly undervalued, estimating its fair value well above the current share price based on future earnings growth and margin expansion.

Ongoing investments in digital transformation, operational efficiencies, and automation, supported by a leadership team focused on efficiency, are expected to yield further improvements in net margins and free cash flow through cost reductions and modernization. This could enhance long-term earnings power.

Why are analysts so bullish? There is a strategic shift at play that could radically reshape the company’s profit potential. The full narrative breaks down the numbers behind this confidence, including transformational growth projections, sharp efficiency gains, and a financial target that may surprise even seasoned investors. Want to see just what is fueling such a bold verdict? Get ready to discover the assumptions driving this high-stakes valuation.

Result: Fair Value of $17 (UNDERVALUED)

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

However, ongoing digitization and stronger competition could curb future revenue growth. This casts doubt on just how much improvement Pitney Bowes can deliver.

Find out about the key risks to this Pitney Bowes narrative.

Another View: Our DCF Model Perspective

While the main narrative leans on forecasts and analyst optimism, our SWS DCF model takes a more fundamentals-based approach. This method suggests the stock still looks undervalued. Is this a sign the market is missing something?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Pitney Bowes for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Pitney Bowes Narrative

If you want to dig into the numbers yourself or think you see a different story taking shape, you can build your own view in just a few minutes. Do it your way

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