Euronet Worldwide (EEFT): Reassessing Valuation After Fed Signals Spark Investor Optimism

If you have been keeping an eye on Euronet Worldwide (EEFT), this past week’s jump in the share price might have you reevaluating your game plan. The real spark appears to be Jerome Powell’s comments at the Jackson Hole symposium, hinting that the Federal Reserve could soon shift toward lower interest rates. Those remarks lit a fire under a range of financials, with Euronet among the names that rallied as investors recalibrated for a potentially more forgiving rate environment. While Euronet’s recent $850 million convertible note offering is noteworthy, it is really the macro winds that are driving the latest moves.

Putting the Fed-driven surge in context, Euronet Worldwide’s stock has slid about 7% over the past year and is down about 3% so far in 2025. Despite healthy growth in both revenue and net income, the stock’s momentum had stalled, and its gains over three years have been modest. The sudden boost after Powell’s speech marks a sentiment shift, especially after a summer that saw risk appetite wane and many investors parked on the sidelines.

With this rebound pushing Euronet back into the spotlight, the question becomes clear: do these changing expectations create a compelling entry point, or is the market simply catching up to the company’s real value?

Most Popular Narrative: 23% Undervalued

According to community narrative, Euronet Worldwide is currently seen as undervalued, with analysts projecting a notable upside from current levels. The consensus is driven by expectations of robust digital growth paired with disciplined profit expansion.

The acquisition of CoreCard, a scalable and proven credit card processing platform, alongside Euronet's Ren platform, positions the company to rapidly expand digital payments processing and credit issuing capabilities, particularly in large and high-growth regions like Europe and Asia. This is expected to drive substantial increases in revenue and improve operating margins due to the higher profitability of software-based, digital payment solutions.

Curious how Euronet could shake up the industry’s status quo? The boldest part of this narrative is a behind-the-scenes forecast. Analysts are betting on a digital transformation, fatter profit lines, and an ambitious future earnings target. Which key benchmarks underpin this bullish target? The details in the full breakdown might surprise you, as growth assumptions are reflected in the analysts’ calculation of fair value.

Result: Fair Value of $127.71 (UNDERVALUED)

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

However, persistent regulatory changes and rapid innovation from global tech giants remain key risks that could quickly challenge the bullish outlook on Euronet.

Find out about the key risks to this Euronet Worldwide narrative.

Another View: Discounted Cash Flow Model

Taking a step back from analyst targets, our DCF model suggests that Euronet trades above its estimated intrinsic worth. This approach weighs future cash flows against today’s share price and offers a very different perspective. Could this mean the market is already pricing in much of Euronet's optimism, or is there upside the numbers miss?

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 Euronet Worldwide 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 Euronet Worldwide Narrative

If you see things differently or would rather dig through the numbers on your own, you can compile a custom view in just a few minutes. Feel free to do it your way.

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Euronet Worldwide.

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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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