Assessing SEI Investments (SEIC) Valuation After Recent Share Price Softness

SEI Investments (SEIC) has quietly slipped about 2% over the past month and roughly 7% in the past 3 months, despite steady mid single digit revenue and net income growth.

See our latest analysis for SEI Investments.

At around $80.90, SEI Investments’ recent 30 day and quarter share price weakness sits in contrast to its solid multi year total shareholder returns. This suggests momentum has cooled even as the longer term wealth creation story remains intact.

If this more measured setup at SEI has you thinking about where else steady compounding might be hiding, it could be worth exploring fast growing stocks with high insider ownership.

With shares lagging even as revenues and profits keep grinding higher, investors are left with a familiar puzzle: is SEI Investments quietly undervalued here, or is the market already pricing in the next leg of earnings growth?

Most Popular Narrative: 15% Undervalued

With SEI Investments last closing at $80.90 versus a narrative fair value of $95.17, the storyline leans toward meaningful upside grounded in recurring growth.

The strategic partnership and investment in Stratos gives SEI deeper access to the fast-growing independent advisory channel, expanding its total addressable market and enabling cross-selling of asset management and technology solutions, which is expected to accelerate revenue and earnings growth over time.

Read the complete narrative.

Curious how modest growth forecasts, steady margins, and a richer future earnings multiple combine into that upside case? The narrative stitches these together in a way that might surprise you. Want to see exactly which assumptions have to click for that valuation to hold?

Result: Fair Value of $95.17 (UNDERVALUED)

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

However, heavy investment needs and rising competition could keep margins under pressure, which may delay the earnings growth and multiple expansion implied by that upside case.

Find out about the key risks to this SEI Investments narrative.

Another Lens On Valuation

Our DCF model paints a cooler picture, putting fair value closer to $68.51, which is below today’s $80.90 price. On this view, SEI looks slightly overvalued, not cheap, raising the question of whether the market is already paying up for that narrative upside.

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 SEI Investments 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 908 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 SEI Investments Narrative

If you would rather probe the numbers yourself and challenge these assumptions, you can build a personalized SEI story in minutes: Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding SEI Investments.

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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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