Assessing Euronet After 12.9% Drop and Recent Analyst Ratings Upgrade in 2025

If you are wrestling with the question of what to do next with Euronet Worldwide stock, you are not alone. Investors have watched the ticker dip 1.6% over the last week and 3.4% through the last month. Even with a 12.9% decline since the year began, it is worth taking a step back and asking what the numbers are really telling us, especially after the strong 13.3% gain over the past three years. All this might have you wondering whether recent market jitters are just noise or signal something deeper changing with the company's outlook.

The reality is that a swing in share price does not always mean the market is rethinking the company’s entire story. Global digital payments and fintech have seen sudden shifts in demand and risk perception, often tied to broader economic sentiment as much as forces unique to Euronet Worldwide. While the stock has not fully recovered from its 1-year drop of 9.9%, many long-term investors still see opportunity, especially if you dig into how the company is valued today.

In fact, Euronet Worldwide boasts a valuation score of 5 out of 6 on our scale, which means the company appears undervalued in nearly every key metric we look at. Still, is a high value score enough, or is there more beneath the surface? Let us break down the different valuation approaches investors use, and later, I will share an even better way to gauge what Euronet Worldwide is truly worth.

Why Euronet Worldwide is lagging behind its peers

Approach 1: Euronet Worldwide Excess Returns Analysis

The Excess Returns valuation model measures how efficiently a company generates returns above its cost of equity, reflecting its ability to create value for shareholders from invested capital over time. This model is particularly useful for financial companies like Euronet Worldwide, as it takes into account both profitability and the cost of raising funds.

For Euronet Worldwide, the key numbers are:

• Book Value: $32.97 per share
• Stable EPS: $6.09 per share (Source: Median Return on Equity from the past 5 years.)
• Cost of Equity: $2.44 per share
• Excess Return: $3.65 per share
• Average Return on Equity: 22.46%
• Stable Book Value: $27.12 per share (Source: Median Book Value from the past 5 years.)

Based on these metrics, the Excess Returns analysis suggests Euronet Worldwide is delivering consistently strong returns relative to its cost of capital. The intrinsic value derived from this approach implies the stock is currently 1.0% undervalued compared to its share price.

This modest discount indicates that the market price is very close to the company's estimated fair value. There may be upside for patient investors. Overall, the current pricing looks reasonable.

Result: ABOUT RIGHT

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Euronet Worldwide.

Simply Wall St performs a valuation analysis on every stock in the world every day (check out Euronet Worldwide's valuation analysis). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes.

Approach 2: Euronet Worldwide Price vs Earnings

For profitable companies like Euronet Worldwide, the price-to-earnings (PE) ratio is a widely recognized and insightful valuation tool. The PE ratio gives you a sense of how much investors are willing to pay for each dollar of current earnings, and is especially useful for established businesses with consistent profitability.

One important aspect to note, however, is that what qualifies as a "fair" PE varies depending on growth prospects and company-specific risks. Faster-growing or less risky companies often deserve a higher PE multiple, while mature or riskier businesses trade at lower multiples. Market sentiment and industry cycles also play a significant role in shaping this number.

Euronet Worldwide currently trades on a PE ratio of 10.49x. When compared to the average PE for its Diversified Financial industry peers at 16.47x and a peer group average of 12.52x, the company looks relatively cheap. However, simply comparing these headline ratios does not always reveal the full picture.

This is where our Fair Ratio comes into play. The Simply Wall St Fair Ratio for Euronet Worldwide currently stands at 14.98x. This proprietary measure takes into account not just how Euronet compares on price to similar businesses, but also factors in its expected earnings growth, profit margins, industry conditions, company size, and inherent risks. Unlike basic peer or industry averages, the Fair Ratio is designed to reflect what investors should rationally pay for this company today, based on its unique mix of fundamentals and outlook.

With a PE of 10.49x versus a Fair Ratio of 14.98x, Euronet Worldwide is trading well below what its fundamentals and outlook suggest is reasonable. This gap implies the market is undervaluing its potential and current earnings profile.

Result: UNDERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Euronet Worldwide Narrative

Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives. A Narrative, in simple terms, is the story or perspective you (or any investor) have about a company’s future. It is how you connect the facts behind the business with your assumptions about where it is headed, and what that means for its fair value today.

With Narratives, you move beyond just the numbers or ratios and start linking Euronet Worldwide’s real-world story, its future revenue, profit, and margins directly to a financial forecast and then to an estimate of what the company should be worth. This approach is not only more powerful but also much more dynamic, because your Narrative will update whenever fresh information, like new earnings or major news, is released.

On Simply Wall St’s Community page, where millions of investors share insights, Narratives make it easy for you to review, compare, and build your own informed outlook. You can clearly see how your Fair Value stacks up against today’s price, helping you decide whether it is time to buy or sell based on your unique perspective.

For Euronet Worldwide, for example, some investors believe rapid global adoption of digital payments and higher margins justify a fair value of $145, while others see regulatory and competitive risks capping value near $110.

Do you think there's more to the story for Euronet Worldwide? Create your own Narrative to let the Community know!

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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